Stocks were trading slightly higher in the morning on
Wall Street Monday following a shaky start. The unstable trading comes after a
brutal April in which an extensive technology sell-off pulled down major
benchmark indices.

The S&P 500 rose 0.6% as of 10:44 am Eastern time
zone. The Dow Jones Industrial Average rose 203 points or 0.5% to 33,170. The
Nasdaq rose 1%.

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Technology and communications stocks made solid gains and
helped offset losses elsewhere in the market. Meta Platforms surged 3.4% and
Microsoft jumped 1.3%.

The slow start to May follows a dismal April, where
pricey technology stocks dragged the broader market lower as they started to
look overpriced, particularly with interest rates set to rise sharply.

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US crude oil prices fell 2.6%, while energy stocks had
a mixed reaction. European energy ministers will hold a meeting to discuss
Russian supply issues and sanctions. Russia’s invasion of Ukraine caused a hike
in already soaring oil and natural gas prices.

Bond yields surged significantly. The yield on the
10-year Treasury rose 2.98% from 2.89% late Friday.

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Treasury yields have been surging all year as investors
anticipate higher interest rates. On Wednesday, the Federal Reserve is expected
to hike short-term interest rates by double the usual amount as it tries to
curb inflation, which is at its highest level in over 40 years.

The Fed has already raised its key overnight rate once,
the first such increase since 2018.

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Fed rate hikes will lead to further increases in
borrowing costs for people buying cars, using credit cards and taking out
mortgages to buy homes.

Recent corporate earnings have also been clouded by
concerns about skyrocketing inflation. Disappointing results or forecasts from
Apple, Alphabet and Amazon helped fuel the selling last week. Investors are
watching the latest results and statements to project just how rising costs
have impacted operations and sales.

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This is another busy week of earnings reports. Expedia,
Clorox, Pfizer, CVS Health, and Kellogg are the companies to release their
earnings reports.