MTH - U.S. Stocks Poised To Extend Gains As Fed Meeting Gets Underway; Why This Analyst Expects 'Young Bull Market' To Remain Alive | Benzinga
Early indications suggest U.S. stock could strive to retain the winning momentum intact, although key catalysts scheduled for the next couple of sessions could leave investors cautious. Some of the Smid-cap earnings have come in better than expected, triggering a strong upward move in the premarket. That said, sentiment toward mega-caps remains muted, and the Nasdaq futures are underperforming the rest of its major counterparts.
The two-day monetary policy meeting of the Federal Reserve kicks off on Tuesday, with investors more focused on what the central bank has to suggest regarding the future rate trajectory.
Cues From Monday's Trading
The oversold levels of the market pulled in bargain hunters on Monday, and the buying was supported by some positive earnings reports, oil’s sharp pullback, and expectations of a dovish message from the Federal Reserve. The major indices opened higher and stayed above the unchanged line throughout the session before ending with gains in excess of 1% each.
The Dow Industrials posted its biggest one-day advance since early June, with all but two of the index components closing higher for the session. With Monday’s advance, the S&P 500 moved out of the correction territory, while the Nasdaq Composite, with an 11.5% drop from its mid-July highs, continues to be in correction territory.
Small-caps, meanwhile, saw volatility in the morning before moving decisively higher by the mid-session.
The market witnessed a broad-based rally, with communication services, consumer discretionary and staple, financial, industrial, and IT stocks leading from the front.
US Index Performance ...