“Stock Market Reversal Impressive; Could This be the Long-Awaited Market Bottom, Bringing Hope to Investors?”
The stock market showed signs of a rebound on Monday afternoon, with the Nasdaq composite erasing its earlier losses and rising by 0.9%. The S&P 500 also climbed by 0.7% and regained its 200-day moving average. The small-cap Russell 2000 saw a 0.4% increase. However, the Dow Jones Industrial Average remained flat after erasing its losses.
One company that performed well on the Dow was Walgreens Boots Alliance, which saw a 4.5% increase. This was due to JPMorgan upgrading the stock to overweight from neutral as the company’s new CEO, Tim Wentworth, began his work.
Apple also showed signs of a potential recovery, as the stock may avoid a seventh straight drop, which would be the longest since January 2022. The stock found support at its 200-day moving average and was up 0.4% on Monday afternoon.
Megacaps, such as Meta Platforms, Microsoft, and Nvidia, also showed strength, with Meta Platforms rising by 2.4%, Microsoft by 1.7%, and Nvidia by nearly 4%.
While the stock market showed some positive signs, there are still risks that investors need to be aware of. Geopolitical risks have increased, with Israel intensifying strikes in Gaza, which could potentially expand the conflict into Lebanon and other areas. Additionally, the stock market faces a week of major earnings reports from companies like Microsoft, Meta, Alphabet, and Amazon.com.
There was also significant merger and acquisition activity in the energy sector, with Chevron agreeing to acquire Hess in a stock deal valued at $53 billion. Chevron’s stock dropped by 2.9% in heavy afternoon volume, while Hess shares reversed slightly lower. This move follows Exxon Mobil’s recent acquisition of Pioneer Natural Resources.
Deal-related trading also affected the market, with Roche Holding agreeing to buy immunology company Telavant for $7.1 billion. Roivant Sciences, which owns a 75% stake in Telavant, saw a 5% drop in its stock, while Pfizer, which owns the remaining 25%, climbed by 1.2%.
Overall, the stock market showed signs of a rebound, but there are still risks and uncertainties that investors should keep in mind. It will be important to closely monitor the market and earnings reports in the coming days.