Global stock indices experienced an uptick on Monday as investors looked ahead to upcoming earnings announcements from several major U.S. tech firms, while oil prices saw a significant decline after Israel’s counterstrike against Iran over the weekend did not target oil and nuclear installations.
The Japanese yen dropped to its lowest point in three months against the dollar, following an election in Japan that plunged the country into political uncertainty.
In relation to the yen, the dollar increased by as much as 1% to a peak of 153.88, marking the yen’s weakest position since late July. The dollar was last observed up 0.68% at 153.34 yen.
The U.S. earnings season is currently underway, featuring a lengthy list of companies set to report this week, including five of the largest U.S. firms: Google’s parent Alphabet, Microsoft, Meta Platforms, Apple, and Amazon.com.
This week also includes the U.S. jobs report for October, which will be released on Friday. Meanwhile, investors are closely monitoring political updates with the U.S. presidential election just over a week away.
Employers are projected to have added 123,000 jobs in October, with the unemployment rate expected to remain unchanged at 4.1%, based on economists surveyed by Reuters.
The upcoming U.S. presidential election is anticipated to be competitive. A recent Reuters/Ipsos poll indicated that Vice President Kamala Harris, a Democrat, was marginally leading Republican Donald Trump nationally with 46% to 43%. U.S. voters will cast their ballots on Nov. 5.
Benchmark 10-year U.S. Treasury yields reached a three-month peak in anticipation of this week’s data and the election. The yield on these benchmark U.S. 10-year notes last climbed 5.2 basis points to 4.284%, up from 4.232% at the end of Friday.
“It’s the calm before the storm,” noted Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York. “Many investors are becoming increasingly cautious as we approach the elections.”
Energy stocks dipped alongside oil prices. The S&P 500 energy sector declined by 0.8%, while U.S. crude oil futures decreased by $4.40, or 6.1%, settling at $67.38 per barrel.
All three major U.S. stock indices experienced gains.
The Dow Jones Industrial Average rose by 296.60 points, or 0.70%, to 42,411.00, the S&P 500 increased by 22.64 points, or 0.39%, to 5,830.76, and the Nasdaq Composite climbed 85.99 points, or 0.46%, to 18,604.59.
Shares of Trump Media & Technology Group, the parent company of Trump’s Truth Social platform, soared to their highest point since June on Monday, continuing a recent upward trend.
MSCI’s index of global stocks rose by 3.06 points, or 0.36%, reaching 848.55. The STOXX 600 index also gained 0.41%.
In Japan, Tokyo’s Nikkei closed up 1.8% after an initial decline following the election results.
Japan’s ruling Liberal Democratic Party lost its parliamentary majority. With the support of junior coalition partner Komeito, the party secured 215 lower-house seats in Sunday’s election, as reported by public broadcaster NHK, falling short of the 233 needed for a majority.
In currency movements, the dollar index, which compares the dollar to a collection of currencies, decreased by 0.07% to 104.31, while the euro gained 0.19%, trading at $1.0813.
Wall Street concluded the day higher on Monday, gearing up for a week filled with earnings reports from major companies and the final days leading up to the Nov. 5 presidential election, as market sentiment improved following the absence of significant disruptions to energy supplies from the developments in the Middle East over the weekend.
Israel’s recent response to an Iranian missile attack this month has largely been focused on missile production facilities and other locations near Tehran, rather than targeting refineries or nuclear sites.
Wall Street is concentrating on the upcoming week, particularly on corporate earnings, with approximately 169 S&P 500 companies scheduled to report.
This includes the majority of the “Magnificent Seven” group of large-cap tech stocks that have propelled Wall Street to record highs. Stocks of Alphabet, Meta Platforms, and Apple rose in anticipation of this week’s results.
Preliminary figures indicate that the S&P 500 advanced by 16.02 points, or 0.28%, closing at 5,824.14 points, while the Nasdaq Composite climbed by 48.58 points, or 0.29%, to close at 18,572.63. The Dow Jones Industrial Average increased by 275.42 points, or 0.65%, reaching 42,389.82.
