The Week Ahead.

U.S. stocks finished higher on Monday as investors awaited more big tech earnings, important labor data, and a Fed policy decision.???

?? DJIA +0.38%, S&P 500 +0.32%, NASDAQ +0.35%

Stocks?traded predominantly in positive territory on Monday, attempting to add to a strong finish last week. Equities started retreating in the final hour of trade after the?U.S. Treasury?reported it would need to borrow an additional $41 billion above its estimates for its April to June funding needs.?

Last week, the Dow Jones Industrial Average rose 0.7%, the S&P 500 advanced 2.7%, and the Nasdaq Composite jumped 4.2%. The?S&P 500?and?Nasdaq?witnessed their largest weekly gain since early November, while the?Dow Jones?had its best week in roughly a month.??

For most of Monday's session, equities were boosted by soaring shares of electric vehicle maker?Tesla.?According to reports, the E.V. maker received tentative approval from?China's government?for its driver assistance technology.?

Meanwhile, reports also surfaced that China's internet giant?Baidu?will team up with Tesla to provide mapping and navigation for the new technology. These developments followed Tesla chief?Elon Musk's?surprise trip to China over the weekend.?

Investors braced for a packed week of?labor data, corporate earnings from tech giants?Apple?and?Amazon, and important signals from the conclusion of the?Federal Reserve's?policy meeting.?

Trading on Monday:

• U.S. Treasury yields?retreated, with the closely followed?10-year yield?falling 5.6 basis points to 4.612%.?
• WTI crude oil?fell 1.45%, settling at $82.63 a barrel on NYMEX.?
• COMEX gold?settled up 0.45% at $2,345.40 per troy ounce.?
• COMEX copper?rose 2.08%, settling at $4.6590 per pound.?
• The Wall Street Journal reported that the?U.S. dollar?fell against the?Japanese yen?following intervention from the Bank of Japan.

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Looking Ahead

It's another critical week for investors, and Monday's trading suggested traders were somewhat nervous about what lies ahead.?

The?market exuberance?we witnessed last week may be tempered in the days to come. Fears over the future path of?monetary policy?and elevated?inflation?could spell a?stagflationary?environment for the U.S. economy.?

This scenario would make the path forward for the?Federal Reserve?difficult, as inflation remains high and economic growth flattens.?

While we are?positive?on markets in the long term, the path ahead for this?market correction?is yet to be determined.?

Stay Tuned!

?? Last Week’s Chart

Source: Wells Fargo Investment Institute, “Looking Ahead,” April 26, 2024

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MCF Capital Management, LLC is an independent, family-run, financial advisory firm that manages investment portfolios for individuals and businesses through Quantitative Market Data Analysis.

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THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INVESTMENT ADVICE.?

???SOURCES:?LSEG Workspace, Dow Jones NewsPlus, MarketWatch, Wall Street Journal, Barron’s, FinancialJuice, Investing .com, CNBC, Reuters, Wells Fargo Investment Institute, TradingView, Zacks