Investing.com – S&P 500 Rises as Earnings Season Approaches

The S&P 500 closed higher Monday, continuing recent gains as investors anticipate a busy week of significant economic data and earnings reports, particularly from major tech companies.

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average rose 273 points, or 0.3%, the S&P 500 index climbed 0.3%, and the NASDAQ Composite increased by 0.3%.

Big Tech Earnings Eyed

Investor positioning in technology stocks heightened ahead of key earnings this week, with the Nasdaq reaching a record intraday high. Earnings from five of Wall Street’s “Magnificent Seven” are expected shortly:

• Alphabet (NASDAQ:GOOGL) on Tuesday
• Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) on Wednesday
• Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday

These firms represent a significant portion of Wall Street’s market valuations, and their results may serve as indicators for the broader market. Expectations are that this week's earnings will reveal whether the artificial intelligence trend continues, as major firms increase capital investment in the technology.

In tech news, Taiwan Semiconductor Manufacturing (NYSE:TSM) fell more than 3% after reports indicated it halted shipments to China’s Sophgo due to a chip being found in a Huawei AIU processor.

Payrolls Head Up Packed Data Slate

In addition to earnings, attention this week is on several vital economic readings, culminating in Friday's monthly jobs report.

The employment report is projected to show jobs growth slowed to 111,000 in October, influenced by strikes and weather disruptions from Hurricanes Helene and Milton, with the unemployment rate remaining at 4.1%. Goldman Sachs noted potential reductions of 40-50k due to hurricanes and a 41,000 drag from strikes.

While Federal Reserve officials may overlook these temporary impacts, Tuesday's JOLTS data for September and Thursday's initial jobless claims report will be closely analyzed for labor market softness trends. Gross domestic product data for Q3 is due Wednesday, followed by the report on personal income and spending, which includes the core PCE price index.

Presidential Election Draws Near

The approaching presidential election, with voting set for Nov. 5, is also a point of interest. Republican candidate Donald Trump and Democratic rival Vice President Kamala Harris are tied in polling, although Trump has shown improved margins. He remains slightly favored in prediction markets.

Oil Prices Slide, Risk Appetite Improves

Crude prices fell sharply after Israel's retaliatory strikes against Iran, which, however, avoided hitting critical nuclear and oil facilities. Iran's indication of limited damage raised hopes against a broader conflict that could implicate the U.S.

Traders had expressed concerns that any significant attacks on Iran’s infrastructure might escalate tensions and disrupt oil supplies from the region.

*(Peter Nurse, Ambar Warrick contributed to this article.)