A pivotal week for markets began with small gains in stocks as traders braced for major central bank rate decisions and a flood of corporate earnings.
In the run-up to the Federal Reserve and European Central Bank meetings, investors were reminded of the negative consequences of aggressive policy tightening. Disappointing data from both the US and the eurozone increased bets that officials are nearing the end of their rate hike cycles to avoid a recession. Aside from the economic picture, over 500 companies worldwide with a combined value of $27 trillion were scheduled to report results, including behemoths Microsoft, Alphabet, and Meta Platforms.
The Dow Jones Industrial Average gained for the 11th consecutive day, its longest winning streak since 2017. The S&P 500 traded near 4,550, while the Nasdaq 100 underperformed as new weightings aimed at reducing megacap dominance went into effect Monday. Two-year US bond yields rose after an auction yielded the highest yield since 2007. The value of the dollar fluctuated. Bitcoin briefly fell below the $29,000 mark. West Texas Intermediate crude reached a high of $78 per barrel. Wheat and Corn rose as Russia launched an attack on one of Ukraine's most important Danube river ports.