US close: Stocks inch higher in catalyst-free session

(Sharecast News) - US stock markets finished with small gains on Monday with investors choosing not to take on too much risk after the strongest weekly rally for markets in about a year. Markets were trading within a tight range for most of the session, with the Dow Jones Industrial Average finishing 0.1% higher, the S&P 500 gaining 0.2% while the Nasdaq rising 0.3%.

Last week, the Dow rose 5.07% for its biggest weekly gain since October 2022. The S&P 500 advanced 5.85% and the Nasdaq jumped 6.6% for both indices' best weeks since November 2022.

Chris Beauchamp, chief market analyst at IG, said Monday's trading session was "lacking in catalysts" after last week's busy agenda. "After their exuberant performance last week, stocks have seen a quieter session, with some profit-taking in Europe and Wall Street eking out only small gains. Last week's action-packed sessions saw a step-change in the outlook for global central bank policy, convincing investors that the period of steady rate increases is behind us," Beauchamp said.

The week ahead will be light on both economic data and company earnings, though Vertex Pharmaceuticals, Uber and Walt Disney the only major blue chips to be reporting in the coming days.

Earnings season is starting to slow down with 81% of the S&P 500 having now released earnings. According to Factset data, 82% and 62% of those who have reported have beaten expectations on earnings and revenues, respectively.

Meanwhile, a speech on Wednesday from Federal Reserve chairman Jerome Powell will be closely watched following the central bank's interest rate decision last week. Fed presidents like New York's John Williams, Atlanta's Raphael Bostic, Richmond's Thomas Barkin and Dallas's Lorie Logan will also make public remarks throughout the course of the week.

"Fed officials will be providing their own views about the macro and policy outlooks after last week's FOMC decision to pause for a second consecutive meeting," said Oscar Munoz, chief US macro strategist at TD Securities. "Given the dovish reaction in markets after the meeting, policymakers might push back on said interpretation this week, erring on the side of being more hawkish."

Citi job cut rumours

Citigroup's managers and consultants working on chief executive Jane Fraser's reorganisation have reportedly discussed job cuts of at least 10% in several major businesses. Shares finished down 0.5%.

Citi announced in September that it would strip out a layer of management and cut jobs in a sweeping reorganisation - known internally as 'Project Bora Bora' - that would give Fraser more direct control as she seeks to simplify the bank and boost its stock price. CNBC on Monday cited people with knowledge of the process as saying that the talks are early and numbers may shift in coming weeks.

Other banks such as Bank of America, Wells Fargo and US Bancorp also finished in the red.

Tesla was in reverse after it was revealed the electric carmaker will be building its new 'affordable', $27,000 model at its plant outside Berlin, where it also announced plans to raise wages for factory workers.