U.S. Stock Markets Rise Amid Key Data Expectations in Tech Sector and Nonfarm Payrolls

U.S. stock markets and indexes rose on Monday, buoyed by easing geopolitical tensions at the beginning of a week filled with pivotal technology sector earnings, monthly nonfarm payroll data, and the final stretch of campaigning ahead of the U.S. presidential election.

Oil Prices Drop as Risk Appetite Grows

Risk appetite surged on Monday, while crude oil prices fell sharply after Israel launched a retaliatory strike against Iran over the weekend. The strike avoided key nuclear and oil facilities, and Iran reported only limited damage, easing fears of an escalation into a full-scale Middle East conflict that might draw in the United States.

Traders were initially concerned that attacks on Iran’s oil and nuclear infrastructure could heighten the conflict, potentially disrupting oil supplies from the region.

Nasdaq Reaches New Highs Ahead of Key Tech Earnings

On Friday, Wall Street closed with mixed results: the Nasdaq reached a new intraday high, while the S&P 500 and DJIA slipped below their recent peaks. Interest in tech stocks intensified ahead of this week’s key earnings reports from the “Magnificent Seven.”

Alphabet (GOOGL) will kick off tech earnings on Tuesday, followed by Meta Platforms (META) and Microsoft (MSFT) on Wednesday. Apple (AAPL) and Amazon (AMZN) will report on Thursday. These five companies, which represent a substantial portion of Wall Street’s market valuation, are anticipated to set the tone for the broader market. Additionally, their earnings are expected to shed light on the role of artificial intelligence, as major firms have recently increased investments in the technology.

Payrolls and Economic Data Headline a Packed Agenda

Alongside earnings, this week will focus heavily on economic data, led by Friday’s monthly employment report. The report is expected to show job growth slowing to around 111,000 jobs in October, reflecting impacts from labor strikes and weather disruptions due to Hurricanes Helene and Milton. The unemployment rate is anticipated to hold steady at 4.1%.

While Fed officials will likely adjust for temporary factors affecting payroll data, Tuesday’s JOLTS report for September and Thursday’s initial jobless claims report will be closely watched for signs of softening in the labor market. Additionally, Wednesday will bring third-quarter GDP data, and Thursday will deliver the report on personal income and spending, including the core PCE price index, the Fed’s preferred measure of inflation.

Countdown to the Presidential Election

Attention will also be focused on the upcoming presidential election, which will be held on November 5.

Donald Trump, the Republican presidential candidate, and his Democratic rival, Vice President Kamala Harris, are tied in national and swing state polls, although former President Trump has improved his results over the past few weeks. The former president is also slightly favored in the election prediction markets.