- As dip buyers emerged from last week's worries about central bank policy, US equities ended a volatile month with a surge on Monday.
- The S&P 500 gained 1.9%, while the tech-heavy Nasdaq 100 gained 3.3%, giving the indexes their greatest two-day gains since April and November 2020, respectively.
- Following the stock market's oscillations in and out of a correction following the Federal Reserve's hawkish remarks on Wednesday, traders were bracing for volatility. Instead, traders increased their bets that the Fed will begin a series of rate hikes in March, resulting in a gradual march higher. The dollar fell against the euro, as treasury yields increased.
- The Nasdaq 100 has already recovered 6.6% since its bottom on Thursday, which can be explained in part by speculators buying back shares of the overvalued tech stocks they had earlier bet against.
- A flurry of corporations, ranging from Alphabet to Exxon Mobil, are slated to release financial results this week, potentially adding to market volatility.
- So far this quarter the stellar run of corporate profitability has persisted. So far this quarter, the company's profitable streak has persisted. So far, 81% of the 172 S&P 500 companies that have reported results have met or exceeded forecasts, with profits coming in roughly 5% higher than expected.
