Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. stocks are rising as fear of rising rates fades

Published 2023-01-09, 11:04 a/m
Updated 2023-01-09, 11:04 a/m
© Reuters.

© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks were rising on Monday as investors raised their hopes for a slower pace of interest rate increases from the Federal Reserve.

At 10:45 ET (15:45 GMT), the Dow Jones Industrial Average was up 234 points or 0.7%, while the S&P 500 was up 1.2%, and the NASDAQ Composite was up 1.9%.

A cooling labor market is boosting hopes for a slower rate hike pace, though officials from the Fed have made it clear they intend to keep rates elevated this year in a bid to tame inflation.

Stocks, particularly in the growth sector, have been weighed by fears about interest rate increases since last year, but Friday's data on jobs helped snap a recent losing streak.

Next up this week is the December report on inflation, with analysts expecting the data to show moderation on prices compared to the same time one year ago. The market is now expecting the Fed to raise interest rates by a slower pace next month, with a quarter-percentage point raise compared with the half-point raise in December and bigger increases at the four meetings before that.

This week will also feature data on weekly unemployment claims and consumer sentiment, a reading that will come out on the same day big banks kick off fourth quarter earnings season.

Shares of China's e-commerce giant Alibaba Group Holdings Ltd. ADR (NYSE:BABA) rose 2.4% after Ant Group (HK:6688) founder Jack Ma said he would give up control of the fintech.

CinCor Pharma, Inc. (NASDAQ:CINC) shares jumped 138% after it agreed to be bought by AstraZeneca (NASDAQ:AZN) for about $1.8 billion.

Shares of Goldman Sachs Group, Inc. (NYSE:GS) rose 1.8% as the Wall Street bank reportedly prepares to lay off more than 3,000 people amid a slump in deal-making and an overhaul of its consumer banking offering.

Oil rose. Crude Oil WTI Futures was up 2.3% to $75.50 a barrel, while Brent Oil Futures crude rose 2.2% to $80.28 a barrel. Gold Futures was up 0.5% to $1878.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.