On Monday, US stocks rose as Wall Street started a week full of corporate earnings and expected some delayed inflation data. The Dow Jones Industrial Average increased by 0.4%, and the S&P 500 and NASDAQ Composite increased by around 0.5% each. The momentum was up with positive weekly gains in major indexes.
An outage affecting the main platforms, including Robinhood and United Airlines, caused an evaluation of the market impact of an Amazon Web Services outage, which was temporarily disrupted. Amazon reported that the cloud services were restored to normal. The technology shares' recovery contributed to stabilizing the sentiment after the recent volatility.
Investors also turned their attention to the upcoming Consumer Price Index report, which was postponed due to the ongoing government shutdown. The Bureau of Labor Statistics will release the data on Friday. Economists expect the core CPI to rise 0.3% for the third consecutive month, keeping the annual rate at 3.1%.
Wall Street was still supported by corporate earnings. Approximately 85% of S&P 500 companies have announced results that are stronger than expected, which is an indication that corporate performance is resistant to economic crises. This week has seen reports on Tesla, Netflix, Intel, and Coca-Cola among the most important highlights.
Market analysts noted that small-cap stocks are beginning to outperform after a prolonged period of underperformance. The Russell 2000 Index climbed 1.7% on Monday, reflecting renewed investor interest in smaller firms. Analysts at Glenmede projected that small-cap earnings could grow more than 35% in the third quarter.
Rick Gardner of RGA Investments stated that market volatility remains contained, with investors showing a tendency to buy on dips. He added that the focus is shifting toward technology firms as investors look for signs that artificial intelligence investments are translating into higher profits.
Markets found additional support from easing trade tensions between the United States and China. Treasury Secretary Scott Bessent said relations with Beijing had “de-escalated,” and both nations plan to resume talks in Malaysia. President Trump also signaled a softer stance on tariffs, raising hopes that the proposed 100% levy on Chinese imports scheduled for November may not proceed.
Global equity markets mirrored the upbeat tone. The Stoxx Europe 600 and MSCI World Index both advanced 0.9%. In currencies, the dollar edged slightly higher, while the yen weakened against the greenback. Bond yields fell modestly, with the US 10-year Treasury yield slipping to 4.00%.
Bitcoin surged 2% to trade above $111,000, while gold prices rose 1.5% to $4,316.40 per ounce. Oil prices declined 0.8% as West Texas Intermediate crude traded at $57.08 a barrel.
Overall, investor sentiment strengthened as strong earnings and reduced geopolitical tensions outweighed concerns about the government shutdown and delayed inflation data.
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