U.S. stocks rose modestly in choppy trade as investors gauged inflation data and braced for quarterly earnings reports to justify stock valuations and the strength of the U.S. economy. Stocks received an initial lift after a Labor Department report showed the producer price index rose less than expected in December.
Johnson & Johnson said it would buy neurological drug maker Intra-Cellular Therapies for $14.6 billion, its biggest deal in more than two years, boosting its presence in the market for brain disease treatments. The deal would help accelerate growth in J&J’s drugs business after the company spun off its consumer health unit in 2023.
U.S. stocks declined to start the week, with the S&P 500 hitting a two-month low as bond yields surged following strong payroll data last week, reinforcing bets that the Federal Reserve will maintain a hawkish stance through most of the year.
A recent surge in U.S. Treasury yields may gain even more momentum after a strong jobs report reinforced expectations that interest rates will stay high for longer and raised the spectre of benchmark 10-year yields hitting 5% — a level that some fear could rattle broader markets.
Oil prices climbed about 2% to a four-month high on expectations that wider U.S. sanctions on Russian oil would force buyers in India and China to seek other suppliers. That put Brent on track for its highest close since August 26 and WTI on track for its highest close since August 12.
The last session saw the Oil gain 0.6% against the Dollar. According to the Stochastic-RSI, we are in an overbought market.
Support: 75.229 | Resistance: 79.399
U.S. inflation data in the coming week could test the nerves of stock investors and further inflame worries about rising Treasury yields and uncertainty over Donald Trump’s policy plans. After back-to-back standout years, the stock market has wobbled out of the gate in 2025, with the benchmark S&P 500 down about 1% so far this year.
IMF will forecast steady global growth and continuing disinflation when it releases an updated World Economic Outlook, IMF Managing director said. With inflation moving closer to the Fed’s target, and data showing a stable labor market, the Fed could afford to wait for more data before undertaking further interest rate cuts.
Oil prices rallied nearly 3% to their highest in three months as traders braced for supply disruptions from the broadest U.S. sanctions package targeting Russian oil and gas revenue. Joe Biden’s administration imposed fresh sanctions targeting Russian oil producers, tankers, intermediaries, traders and ports.
The Oil-Dollar pair skyrocketed 2.9% in the last session. The MACD is giving a positive signal.
Support: 70.298 | Resistance: 80.978
