US Markets Open Higher, Gold Hits Record $5,000
Wall Street started the week on a positive note, with major indices climbing as investors braced for a flood of corporate earnings and key inflation data. In a historic move, gold prices surged past $5,000 an ounce for the first time ever.
Key Market Movers
- Indices Up: The S&P 500 and Dow Jones hit three-week highs.
- Gold Soars: Spot gold crossed the $5,000/oz milestone, driven by central bank buying and safe-haven demand.
- Sector Watch: Energy led gains, up 1.1%, while real estate lagged.
Focus on Fed Policy and Inflation
The market’s upbeat mood follows renewed hopes for interest rate cuts this year, fueled by a softer jobs report. Traders now price in about 45 basis points of cuts, likely starting in September or November.
All eyes are on the upcoming April Consumer Price Index (CPI) report, due Wednesday, which is expected to show a moderation in core inflation. Comments from several Federal Reserve officials this week will also be scrutinized for policy clues.
Earnings Season in Full Swing
The first-quarter earnings season accelerates with reports from giants like Walt Disney, Uber, and Arm Holdings. Early results are strong: 77% of S&P 500 companies that have reported so far have beaten analyst expectations, well above the long-term average of 67%.
Notable Stock Action
Gainers:
- Spirit Airlines: Jumped 10.8% after a narrower-than-expected Q1 loss.
- Paramount Global: Gained 3.8% as it opened talks with other bidders after ending exclusive Skydance negotiations.
Losers:
- Tyson Foods: Fell 6.8% despite beating profit estimates, as it warned of pressured consumers.
- Apple: Slipped 0.5% following reports it shut down its electric vehicle project.
Market Breadth: Advancers outnumbered decliners by a 2.33-to-1 ratio on the NYSE and 1.60-to-1 on the Nasdaq. The S&P 500 posted 19 new 52-week highs, while the Nasdaq saw 48.
