[1/2] Traders enactment connected the level of the New York Stock Exchange (NYSE) successful New York City, U.S., November 7, 2022. REUTERS/Brendan McDermid
- Meta Platforms rallies aft study of occupation cuts
- Apple slips arsenic COVID-19 curbs crimp iPhone accumulation successful China
- Indexes close: S&P 500 +0.96%, Nasdaq +0.85%, Dow +1.31%
Nov 7 (Reuters) - Wall Street ended sharply higher Monday arsenic investors focused connected Tuesday's midterm elections that volition find power of Congress, portion shares of Meta Platforms jumped connected a study of occupation cuts astatine the Facebook parent.
Republicans are favored to triumph a bulk successful the House of Representatives successful the elections, with the Senate rated a toss-up by nonpartisan forecasters. Republicans could usage a bulk successful either enclosure to hinder Democratic President Joe Biden's agenda.
"The likelihood that the Republicans instrumentality the House oregon the Senate is beauteous high, truthful guaranteeing immoderate signifier of gridlock implicit the adjacent mates of years. That would astir apt instrumentality taxation hikes disconnected the table, and immoderate benignant of large spending perchance perceived arsenic inflationary disconnected the table," said Ross Mayfield, an concern strategy expert astatine Baird.
Meta Platforms Inc (META.O) jumped implicit 6% pursuing a study that the institution was readying to statesman large-scale layoffs this week. The banal has slumped much than 70% truthful acold this year.
Focus this week volition besides beryllium connected U.S. user prices information for October, owed retired connected Thursday, for clues astir however overmuch the U.S. Federal Reserve's accelerated involvement complaint hikes are helping chill down the economy.
Four Fed policymakers connected Friday indicated they would consider a smaller complaint hike astatine their adjacent argumentation meeting, contempt caller information showing different period of robust occupation gains and lone tiny signs of advancement successful lowering inflation.
Traders are divided astir whether the Fed volition rise involvement rates by 50 ground points oregon 75 ground points astatine the U.S. cardinal bank's gathering successful December.
"All other equal, whether the terminal complaint sits astatine 4.5%, 5% oregon beyond, monetary argumentation is poised to person a antagonistic effect connected the system heading into 2023," Glenmede's concern strategists wrote successful a enactment connected Monday.
Unofficially, the S&P 500 climbed 0.96% to extremity the league astatine 3,806.90 points.
The Nasdaq gained 0.85% to 10,564.52 points, portion the Dow Jones Industrial Average roseate 1.31% to 32,827.00 points.
All the 3 large U.S. indexes person slumped this year, with the tech-heavy Nasdaq (.IXIC) down 33% owed to worries that assertive monetary argumentation tightening could cripple the U.S. economy.
Digital World Acquisition Corp (DWAC.O) surged 66% aft erstwhile U.S. President Donald Trump hinted astatine another White House bid. The blank-check steadfast has agreed to instrumentality social-media startup Trump Media & Technology Group Corp public.
Walgreens Boots Alliance Inc (WBA.O) gained 4.1% aft VillageMD, a superior attraction supplier backed by the pharmacy chain, said it volition acquire Summit Health successful a woody valued astatine astir $9 billion.
Advancing issues outnumbered falling ones wrong the S&P 500 (.AD.SPX) by a 2.8-to-one ratio.
The S&P 500 posted 18 caller highs and 15 caller lows; the Nasdaq recorded 93 caller highs and 221 caller lows.
Volume connected U.S. exchanges was comparatively light, with 10.5 cardinal shares traded, compared to an mean of 11.8 cardinal shares implicit the erstwhile 20 sessions.
Reporting by Shubham Batra and Amruta Khandekar successful Bengaluru, and by Noel Randewich successful Oakland, Calif.; Additional reporting by Shreyashi Sanyal and Devik Jain; Editing by Maju Samuel, Chizu Nomiyama and Deepa Babington
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