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    • Wall Street climbs as oil falls nearly 6% ahead of a big week for Big Tech
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    Wall Street climbs as oil falls nearly 6% ahead of a big week for Big Tech

    Harry Posted on

    Stan Choe
    | Associated Press

    new York – US stocks are climbing on Monday ahead of the big week of earnings reports from Big Tech stocks. Meanwhile, oil prices are falling and a barrel of U.S. crude is heading for its worst loss in more than two years.

    The S&P 500 was up 0.5% in early trading. The main gauge of the US stock market is experiencing its first losing week in seven weeks but is still near its all-time high from earlier this month.

    The Dow Jones Industrial Average was up 285 points, or 0.7%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was nearing its all-time high in July with a 0.6% gain.

    Big Tech stocks have led the way, with five of the giants known as the “Magnificent Seven” appearing on this week’s schedule to report their latest earnings. These high-flying stocks have been at the forefront of Wall Street for years, and they’ve grown so much that their moves alone could transform the S&P 500.

    Alphabet, Meta Platforms, Microsoft, Apple and Amazon, which swooned in the summer on concerns that their stock prices were rising too fast compared to their profits, are under pressure to deliver big enough growth to justify a rebound for most of their stocks this week. prices.

    Tesla, another member of the Magnificent Seven, rose to one of the best days in its history last week after reporting a better profit than analysts expected.

    Big Tech’s gains on Monday helped offset declines in stocks in the oil and gas sector, which have been hurt by the decline in oil prices. Exxon Mobil’s 1.4 percent decline and ConocoPhillips’ 1.7 percent decline were two of the S&P 500’s heaviest weights.

    While the barrel of benchmark US crude oil fell by 5.9%, the international standard Brent crude oil lost value by 5.9%. It was their first trade since Israel attacked Iranian military targets on Saturday in retaliation for earlier ballistic missile bombardment. Israel’s attack was more measured than some investors had feared, raising hopes that the worst-case scenario could be avoided.

    Beyond the violence causing human harm, concern in financial markets is that an escalating war in the Middle East could disrupt the flow of crude oil from Iran, a major oil producer. Such concerns caused the price of Brent crude oil to rise to nearly $81 per barrel in early October, despite signals that there was plenty of oil available for the global economy. It has since fallen to $71.

    Financial markets are also struggling with the volatility that usually surrounds the U.S. presidential election, with Election Day fast approaching every other Tuesday. Markets were historically shaky heading into elections, but calmed down afterwards regardless of which party won.

    The trend affects both stock and bond markets. In the bond market, Treasury yields have remained relatively stable after rising sharply for most of this month.

    The yield on the 10-year Treasury note remained at 4.24% late Friday. But it’s still well above the roughly 3.60% level at the beginning of October.

    Yields rose following reports showing the U.S. economy remains stronger than expected. That’s good news for Wall Street because it bolsters hope that the economy can escape the worst inflation in generations without the painful recession that many fear is inevitable.

    But it is also forcing traders to backtrack on their bets on how deeply the Fed will cut interest rates; because it is now focused on keeping the economy alive as well as reducing inflation. Treasury yields also clawed back some of their earlier declines as bets on how much the Fed would cut its overnight interest rate faded.

    On overseas stocks, Japan’s Nikkei 225 index rose 1.8% after Japanese Prime Minister Shigeru Ishiba’s ruling coalition lost its majority in the 465-seat lower house in crucial parliamentary elections on Sunday.

    Stock indices in other parts of Asia and Europe were mixed.

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    AP Business Writers Yuri Kageyama and Matt Ott contributed.

    Harry
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