Highlights
Equities bounced back Monday amid bargain-hunting after last week's losses but trading was light. The Dow Jones industrial average and the S&P 500 and the Nasdaq all gained 1.2 percent. Bond yields and dollar currency pairs were mostly lower while oil prices rose.
Activity was constrained amid lack of macro news and uncertainty ahead of the Federal Reserve's decision whether to cut rates by 25 or 50 basis points. After Friday's miss on nonfarm payrolls and cautious comments from Fed officials, the market tends to expect 25 but sees a chance the Fed will go 50.
Megacaps were mostly better Monday after weakening last week although Apple and Alphabet lagged. Among sectors, best were airlines, metals, chipmakers, aerospace & defense, banks, auto suppliers and cruise lines. Lagging were media, cosmetics, department stores, managed care and restaurant chains.
Activity was constrained amid lack of macro news and uncertainty ahead of the Federal Reserve's decision whether to cut rates by 25 or 50 basis points. After Friday's miss on nonfarm payrolls and cautious comments from Fed officials, the market tends to expect 25 but sees a chance the Fed will go 50.
Megacaps were mostly better Monday after weakening last week although Apple and Alphabet lagged. Among sectors, best were airlines, metals, chipmakers, aerospace & defense, banks, auto suppliers and cruise lines. Lagging were media, cosmetics, department stores, managed care and restaurant chains.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
