Most big US companies have nevertheless been reporting profits for the start of 2026 that have topped analysts’ expectations. That’s helped the S&P 500 jump nearly 13 per cent since hitting a low in late March.
Verizon Communications joined the list, and its stock climbed 4.1 per cent after the company said it added more postpaid phone customers than it lost during a first quarter for the first time since 2013. It also raised its forecast for profit growth this year, even though its revenue for the first quarter fell short of analysts’ expectations.
Domino’s Pizza helped drag on the market and fell 9.8 per cent after it reported weaker profit and revenue for the latest quarter than analysts expected.
Several of Wall Street’s most influential stocks are scheduled to deliver their own profit reports this week, including Alphabet, Amazon, Meta Platforms and Microsoft all on Wednesday. Apple will report on Thursday.
In the bond market, Treasury yields held relatively steady even with the rise in oil prices. The yield on the 10-year Treasury note remained at 4.31 per cent, where it was late Friday.
The Federal Reserve will announce its latest move on interest rates Wednesday, and the consensus expectation among traders is that it will hold rates steady. Lower rates would give the economy a boost, but they would also threaten to worsen inflation when oil prices are in flux and tariffs are also threatening to raise prices.
Wednesday will likely be the final meeting where Chair Jerome Powell will lead the Fed. His term as chair is scheduled to expire next month, and Trump has already named a nominee for his replacement, Kevin Warsh.
The European Central Bank, Bank of Japan and Bank of England will also be announcing their own rate decisions this week.
In stock markets abroad, indexes were mixed in Europe following a stronger finish in Asia. South Korea’s Kospi jumped 2.2 per cent, and Japan’s Nikkei 225 rose 1.4 per cent for two of the world’s bigger moves.