Market sentiment remained upbeat despite a slight downturn on Monday, as investors eagerly awaited Federal Reserve Chair Jerome Powell’s remarks ahead of the highly anticipated jobs report. The major indices, including the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, dipped around 0.2%, but were still poised for a strong monthly and quarterly performance. The Federal Reserve’s recent interest rate cut and signs of economic resilience have boosted confidence, with the market logging three consecutive weekly gains.
However, a slew of profit warnings from major automakers cast a shadow over the market. Stellantis, the parent company of Chrysler, saw its shares plummet 13% after slashing its margin outlook due to supply chain disruptions and weakness in China. General Motors and Ford also fell around 3%, while luxury automaker Aston Martin’s shares tumbled over 20% after issuing an earnings warning.
In contrast, China’s benchmark stock index surged to its highest level since 2008, entering a bull market, as investors snapped up shares ahead of a week-long holiday. Meanwhile, Japan’s Nikkei 225 index took a hit after a surprise vote caught investors off guard.
Oil prices seesawed after rising initially on news of Israel’s escalating attacks in Lebanon, before falling as traders weighed the potential impact of China’s economic stimulus measures. Stellantis’ profit warning was particularly noteworthy, as the automaker revised its 2024 forecast to reflect negative cash flow and lower operating profit margins.
In other news, DirecTV announced plans to acquire rival Dish Network, including its streaming brand Sling TV, in a debt exchange transaction. The deal, pending regulatory approval, would create one of the largest pay-TV providers in the US.
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