Stocks drop at the open MONDAY as investors face another round of earnings and evaluate the outlook for interest rates. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all saw declines, with Dell Technologies set to cut 5% of its global workforce. The U.S. dollar continues to edge higher and oil prices tick up. Equity markets have been on an uptrend this year, with the S&P 500 up 7.7% YTD. The focus this week will be on whether the momentum can be sustained, especially after last month's jobs report showed payrolls rose by 517,000. Investors will get more insight into the U.S. central bank's reaction when Fed Chair Jerome Powell speaks on Tuesday. Meanwhile, Wall Street will have a docket of financials to parse through, including Disney, Uber, PayPal, and PepsiCo. The earnings decline for Q4 2022 is larger than last week and may mark the first YoY decline in earnings since Q3 2020.
How will the Fed's reaction to recent jobs data affect the stock market and investment strategy?
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