US Stocks Rise Ahead Of Tech Earnings Deluge

US stocks advanced on Monday, extending last week's gains as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root.

The S&P 500 gained 1.19 percent, to end at 3,797, the Nasdaq added 0.86 percent, to reach 10,952, and the Dow Jones rose 1.34 percent to 31,499.

A report from S&P Global showed a contraction in business activity this month, offering a hint that the Fed's succession of steep interest rate hikes are having their desired effect, and raising hopes that the central bank could begin slowing the pace of further increases.

"It’s a sign the economy is slowing down and what the Fed is doing is working," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "They may be achieving their goal and we might be approaching the fourth quarter of rate hikes, to use an football analogy."

Among the 11 major sectors in the S&P 500, nine closed green, with healthcare enjoying the largest percentage gain. Materials and real estate ended the session in negative territory.

Tesla shares slid 1.5 percent after it cut prices for its Model 3 and Model Y vehicles by as much as 9 percent in China, signaling softening demand in the world's largest market for cars.

Results from a slew of heavy-hitting tech and tech-adjacent companies are likely to dominate the earnings chatter this week.

Microsoft and Google owner Alphabet are due to announce theirs today, with Apple, Meta and Amazon all following on Wednesday or Thursday. High-rolling industrials including Boeing, Ford, General Motors, Chevron and Exxon Mobil are also expected to post earnings. (Reuters)