Stocks rose on Monday as investors looked ahead to another big week of corporate earnings. The Dow Jones Industrial Average climbed over 500 points, while the S&P 500 Index and Nasdaq Composite gained 2.5% and 3%, respectively.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): +2.65% or +94.88 points to 3,677.95
Dow Jones Industrial Average (NYSE: DIA): +1.85% or +550.99 points to 30,185.82
Nasdaq Composite Index (NASDAQ: QQQ): +3.43% or +354.41 points to 10,675.80
The session's moves come after a volatile week for Wall Street as market participants reacted to persistently high levels of inflation across the U.S. economy. The S&P 500 just came off its fourth negative week in five, with investors assessing the Federal Reserve's next months ahead of their November policy-setting meeting.
On Monday, U.K. Finance Minister Jeremy Hunt that the country is planning to scrap almost all proposed tax cuts, which had previously sent interest rates soaring the the pound falling against the U.S. dollar.
On the earnings front, Bank of America (NYSE: BAC) reported better-than-expected third-quarter earnings before market open on Monday, with CEO Brian Moynihan saying consumers have remained financially resilient despite inflationary pressures and recession concerns. However, like other big Wall Street banks, BofA saw a profit loss as it set aside funds in preparations for possible defaults in the wake of a potential recession.
For stocks, Roblox (NASDAQ: RBLX) soared over 20% on Monday after the company released its September 2022 metrics reports, highlighting that daily active users totaled 57.8 million, rising 23% year-over-year.
The week ahead is going to be busy on the corporate earnings side, with companies including Netflix (NASDAQ: NFLX), Tesla (NASDAQ: TSLA) and IBM (NYSE: IBM) set to report.
More pain for Wall Street is also expected, at least according to analysts at Barclays (NYSE: BCS). Barclays sees the market to extend its sell-off well into 2023, as the firm believes stock valuations are not reflecting the risk of a recession currently.
The firm said its most likely scenario for the S&P 500 is to end the year down over 10% from its Monday trade at 3,200. Moveover, in the case of a recession, the S&P could reach loses of 2,982 to close out 2022, nearly 19% lower from its Monday valuation.