Stock Markets Rise on Tech Optimism, But Fed Rate Cut Decision Looms

U.S. stocks kicked off a busy week with modest gains on Monday, April 29th, fueled by optimism in the technology sector and a rebound from last week's losses. However, anxieties surrounding the Federal Reserve's upcoming interest rate decision later this week have investors cautious.

All three major indices were in positive territory this morning. The S&P 500 climbed 0.3%, the tech-heavy Nasdaq Composite gained roughly 0.3%, and the Dow Jones Industrial Average increased about 0.2%.

This uptick follows a strong performance on Friday, spurred by positive earnings reports from Alphabet (GOOG, GOOGL) and Microsoft (MSFT). This week, all eyes are on Apple (AAPL) and Amazon (AMZN) earnings, which will be crucial in determining the sustainability of the Big Tech rally.

Tesla Soars on China News

Tesla (TSLA) was the clear stand-out player of the day, with its stock price surging over 11%. This jump followed Tesla CEO Elon Musk's surprise visit to China, which resulted in significant progress regarding the rollout of its Full Self-Driving (FSD) software in the country. A key deal with Baidu (BIDU) is seen as a major boost for Tesla's sales in this crucial market. Baidu's US-listed stock also benefitted, rising almost 7%.

Fed Decision in Focus

The upcoming Federal Reserve policy decision on Wednesday is a major concern for investors. Uncertainty and anxiety surround the future trajectory of inflation and whether recent price pressures warrant continued monetary tightening. While the Fed is expected to maintain current interest rates, the debate about the timing and possibility of rate cuts in 2024 continues. The April jobs report, due later this week, could also influence the Fed's decision-making.

Other Notable Movers

• Philips (PHG) US-listed shares surged over 33% after the medical device maker settled claims linked to a breathing device recall for a significantly lower amount than anticipated.
• Apple (AAPL) stock rose following an analyst upgrade to "Buy" with a higher price target.

The rest of the "Magnificent Seven" tech stocks saw mixed results, with only Tesla and Apple finishing the day in positive territory.

Overall, while the market opened with cautious optimism, the upcoming economic data and the Fed's decision will likely determine the stock market's direction in the coming days.