MONDAY MADNESS on Wall Street : In a bullish Monday session, the Dow Jones Industrial Average marked a notable gain of 244 points, equivalent to a 0.7% increase, achieving an unprecedented record level. Simultaneously, the S&P 500 ascended by 0.5%, reaching an all-time high, while the Nasdaq Composite saw a 0.6% advance.
Macy’s Rejects $5.8 Billion Proposal; SolarEdge Announces Workforce Cut
Macy’s demonstrated resilience, surging over 3% after dismissing a $5.8 billion proposal from Arkhouse Management and Brigade Capital Management to privatize the retail giant. On a different note, SolarEdge witnessed a substantial 6% jump following its announcement of a 16% reduction in its workforce.
B Riley Financial Faces Investigation; Archer-Daniels-Midland Issues Weak Guidance
However, not all companies experienced positive movements. B Riley Financial faced a nearly 4% decline amid reports of regulatory scrutiny into deals connected to securities fraud. Archer-Daniels-Midland, on the other hand, plummeted by more than 18% after providing discouraging earnings guidance and placing CFO Vikram Luthar on leave due to an investigation tied to accounting practices.
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Market Resumes Bullish Trend Amid Wall Street Optimism
Monday’s gains followed the breaking of intraday and closing record highs in January 2022 by the broad S&P 500. This development affirmed that Wall Street is indeed in a bull market that commenced in October 2022, signaling a return to positive momentum after a brief market stall at the beginning of 2024.
Investor Sentiment and Market Outlook
Brian Price, Head of Investment Management at Commonwealth Financial, remarked, “It’s almost like a fear of missing out.” He noted that after a period of volatility at the start of the year, investors appear to be resuming the upward trend. The strength of Wall Street is expected to hinge on the U.S. central bank’s ability to achieve a soft landing, cooling the economy without triggering a recession.
Uncertainty Surrounds Potential Fed Rate Cuts
Investors are anticipating benchmark interest rate cuts, with a 46% probability of a Fed rate cut in March, according to CME Group’s FedWatch Tool, marking a decline from the previous week’s 81%. Meanwhile, there is a nearly 54% chance that the central bank will maintain rates, up from around 19% one week prior.
Upcoming Economic Reports and Market Focus
Market participants will closely monitor economic reports scheduled for release later this week, particularly gross domestic product data on Thursday and personal consumption expenditures prices on Friday. These reports are expected to provide insights into central bank policymakers’ views on future monetary policy.