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Meta Platforms rebounds after report of job cuts
Apple slides as COVID-19 slows iPhone production in China
Indices: S&P 500 +0.29%, Nasdaq +0.03%, Dow +0.84%
November 7 (Reuters) –
The S&P 500 rose on Monday as investors focused on Tuesday’s midterm elections that will determine control of Congress, while shares in Meta Platforms rose on a report of job cuts at parent Facebook.
Republican candidates have gained momentum in the polls and analysts expect a divided government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome could hamper Democratic President Joe Biden’s agenda.
“The likelihood of Republicans taking the House or Senate is pretty high, which warrants some kind of gridlock over the next two years. That would likely eliminate tax increases and any potentially perceived inflationary spending.” the table,” said Ross Mayfield, an investment strategy analyst at Baird.
This week’s focus will also be on US consumer price data for October, due Thursday, for clues as to how much the Fed’s rapid rate hikes are helping to cool the economy. from USA
Four Fed lawmakers indicated Friday they would consider a smaller rate hike at their next policy meeting, even though new data shows another month of strong job gains and only small signs of progress in curbing inflation.
Traders are divided on whether the Fed will raise interest rates by 50 basis points or 75 basis points at the US central bank meeting in December.
“All things being equal, whether the terminal rate stands at 4.5%, 5% or higher, monetary policy is poised to have a negative effect on the economy heading into 2023,” wrote investment strategists at Glenmede in a note on Monday.
All three major US indices have tumbled this year, with the tech-heavy Nasdaq falling 33% on concerns that aggressive monetary policy tightening could cripple the US economy.
In afternoon trading, the S&P 500 rose 0.29% to 3,781.54 points.
The Nasdaq gained 0.03% to 10,478.70 points, while the Dow Jones Industrial Average rose 0.84% to 32,675.85 points.
Meta Platforms Inc jumped 4.6% following a report that the company planned to begin large-scale layoffs this week. The stock is down more than 70% so far this year.
Weighing on the tech-heavy Nasdaq, Apple Inc fell about 1% after the company said it expected lower shipments of premium iPhone 14 models than previously forecast.
Digital World Acquisition Corp surged 44% after former US President Donald Trump hinted at another bid for the White House. The blank check firm has agreed to take social media startup Trump Media & Technology Group Corp. public.
Walgreens Boots Alliance Inc gained 3.8% after VillageMD, a primary care provider backed by the pharmacy chain, said it would acquire Summit Health in a deal valued at nearly $9 billion.
Of the 11 S&P 500 sector indices, eight rose, led by energy, up 1.51%, followed by a 0.95% gain in communication services.
Advancing issues outnumbered falling issues within the S&P 500 by a ratio of 1.4 to one.
The S&P 500 posted 15 new highs and 15 new lows; the Nasdaq posted 63 new highs and 180 new lows.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, California; Additional reporting by Shreyashi Sanyal and Devik Jain; Editing by Maju Samuel and Chizu Nomiyama)