US Stocks-Wall St climbs after US, Iran pause conflict; focus on Fed, earnings

Among other movers, U.S. oilfield services company Baker Hughes BKR.O rose 8.6% after reporting a stronger-than-expected second-quarter profit on Sunday. Advancing issues outnumbered decliners by a 3.18-to-1 ratio on the NYSE and by a 3.43-to-1 ratio on the Nasdaq. The S&P 500 posted 21 new 52-week highs and two new lows while the Nasdaq Composite recorded 69 new highs and 68 new lows. The Fed, meanwhile, has offered few clues on monetary policy outlook since Kevin Warsh took over as chair. Investors expect rates to be left unchanged this week, but are pricing in at least 25 basis points of increase later this year, LSEG-compiled data showed. "The Fed is not going to move this week. It would be difficult to justify a hike based on a short-term spike in oil prices," said Thomas Hayes, chairman at Great Hill Capital. The Personal Consumption Expenditures Price Index for June is due a day after the central bank's decision. The Fed's preferred inflation gauge will likely be key in shaping market expectations for interest rates later this year. At 9:57 a.m. ET, the Dow Jones Industrial Average .DJI rose 489.98 points, or 0.94%, to 52,437.23, the S&P 500 .SPX gained 40.53 points, or 0.55%, to 7,452.51 and the Nasdaq Composite .IXIC advanced 144.57 points, or 0.59%, to 25,120.40. Interest-rate-sensitive Russell 2000 small-cap index .RUT climbed 1.5%, while the CBOE Volatility Index .VIX dipped 0.75 points to 17.85. Communication services .SPLRCL led the gains on the S&P 500, with a 2.2% rise, as Alphabet GOOGL.O rose 3%. The Fertilizers & Agricultural Chemicals index .SPLRCCHFA fell 1.7%, with CF Industries CF.N and Dow DOW.N down about 3.2% each. Earnings from "Magnificent Seven" companies Microsoft MSFT.O, Amazon.com AMZN.O, Meta META.O and Apple AAPL.O will test the AI trade further this week. All these mega-cap stocks were up about 1% each. Negative cash-flow reports from Alphabet GOOGL.O and Tesla TSLA.O last week added to concerns about debt-fueled corporate spending. Volatile chip stocks have been mixed recently, with industry leader Nvidia NVDA.O dropping about 2%. Chinese chipmaker CXMT Corp's 688825.SS stellar debut signaled intensifying competition for the U.S. semiconductor industry. The tech-heavy Nasdaq .IXIC is down about 7% from its record high, while earlier this month the Philadelphia SE Semiconductor Index .SOX confirmed it has been in "bear market" territory since late June. An index closing 10% below its most recent high is called a technical correction, while a 20% drop is referred to as a bear market. Wall Street's main indexes rose on Monday after the United States and Iran paused hostilities, boosting risk appetite ahead of a week of major earnings, economic data and an interest rate decision. A wide swathe of stocks sensitive to energy prices gained. United Airlines UAL.O and Delta Air Lines DAL.N advanced 3.3% and 2.2%, respectively. Cruise operators Royal Caribbean RCL.N and Carnival CCL.N climbed 1.9% and 3.6%, respectively. A 6.7% slide in Brent crude prices LCOc1 to $90.37 a barrel weighed on shares of energy companies. Occidental Petroleum OXY.N and Exxon Mobil XOM.N were down about 2% each. Markets ended last week rattled by escalating Middle East tensions, on worries that the conflict could fuel further price pressures ahead of the Fed's monetary policy decision due on Wednesday. Despite the announcement of the pause in attacks over the weekend, shipping through the Strait of Hormuz remained low, with Iran still controlling the critical waterway.

US Stocks-Wall St climbs after US, Iran pause conflict; focus on Fed, earnings

Baker Hughes jumps after profit beat

Fed decision and inflation data in focus

Big tech, chip stocks and other sector moves

Wall Street rises after easing Middle East tensions

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