Wall Street rallied on Monday , kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve’s two-day monetary policy meeting.
“Today is an earnings rebound,” said Oliver Pursche, senior vice-president at Wealthspire Advisors, in New York. “The market got oversold, and the reality is that earnings have been pretty good, the US economy continues to chug along, and is likely to do so in the fourth quarter and into the first part of next year.”
Investors have shown “less pessimism”, Pursche added. “First- and second-quarter calls had a more negative tone. There was anxiety over interest rates, Fed policy, the recession that never came.” Investors will scrutinise the accompanying statement and Fed chair Jerome Powell's subsequent question-and-answer session for clues regarding the central bank’s path forward with rates.