World News | U.S. stocks move higher ahead of tech-heavy earnings week

NEW YORK, Oct. 24 (AP) Stocks shrugged off a shaky morning session to move higher on Monday ahead of a big week of earnings for big tech companies.

The S&P 500 was up 1% as of 12:03 p.m. ET. The Dow Jones Industrial Average rose 375 points, or 1.2%, to 31,462, while the Nasdaq lost 0.3%.

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Bond yields retreated from multi-year highs. The 10-year U.S. Treasury yield fell to 4.21% after hitting as high as 4.28% earlier on Monday. It reached 4.22% late Friday.

Google’s parent company, as well as Facebook’s parent company Amazon and Apple, both released their latest financial results this week. They are among the most expensive stocks in the benchmark S&P 500, and their gains this week could mean a big rally or decline for the broader market.

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Several big companies outside the tech industry also reported earnings this week, including Coca-Cola, General Motors and Caterpillar.

Investors are closely watching the latest round of corporate earnings to better understand the impact of inflation on different sectors of the economy. Prices for everything from clothing to food have remained at their highest levels in 40 years. That puts pressure on businesses to raise prices and cut costs, while squeezing consumers.

The Federal Reserve and central banks around the world have been raising interest rates to curb inflation.

That makes borrowing more expensive and also weighs on expensive stocks like Big Tech. Economists and investors worry that higher interest rates could slow the economy and tip it into recession.

The U.S. economy is already slowing and actually contracted in the first half of the year. The government will release its third-quarter gross domestic product report on Thursday.

European markets made solid gains. British government bonds rose as Finance Minister Rishi Sunak was expected to become prime minister, replacing Liz Truss, who resigned last week after her tax-cut economic package sparked financial market turmoil. (Associated Press)

(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)