ASX set to rise as Wall Street jumps; UK markets cheered by Sunak

Stocks shook off an early bout of unsettled trading and marched higher ahead of a heavy week of earnings from big tech companies.

The S&P 500 has risen by 0.9 per cent in mid-afternoon trade while the Dow Jones has bounced by 1.2 per cent. The Nasdaq is 0.4 per cent higher. The Australian sharemarket is set for a positive start to the session, with futures pointing to a rise of 28 points, or 0.4 per cent, at the open. On Monday, the ASX jumped by 1.5 per cent.

Bond yields eased back from their multi-year highs. The yield on the 10-year Treasury fell to 4.22 per cent after moving as high as 4.28 per cent earlier Monday. It reached 4.22 per cent late Friday.

Google’s parent company, along with Facebook’s parent, Amazon and Apple are all reporting their latest financial results this week. They are among the priciest stocks in the benchmark S&P 500 and their earnings this week could mean big moves, up or down, for the broader market.

Several big companies outside of the tech sector are also reporting earnings this week, including Coca-Cola, General Motors and Caterpillar.

“In general, the market is sitting back and there are a few data points people are waiting to see,” said Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Managers Solutions.

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Investors are closely reviewing the latest round of corporate earnings to get a better picture of inflation’s impact on different areas of the economy. Prices on everything from clothing to food remain at their highest levels in four decades. That has put pressure on companies to raise prices and cut costs, while squeezing consumers.

The Federal Reserve and central banks around the world have been raising interest rates in an effort to tame inflation. Interest rate increases have been weighing on pricier stocks, like technology companies, by making less-risky bonds seem more attractive in a volatile stock market.