Wall Steet Today | Indexes Rebounded Today, Despite Individual Stock Drops

U.S. stocks saw sharp gains Monday, with indexes bouncing after the S&P 500 and Nasdaq Composite fell into corrections last week as investors looked ahead to a Federal Reserve decision, jobs data, earnings reports, and other potential market-moving events.

The Federal Reserve’s policy statement is set up to be the No. 2 event on Wednesday, with investor focus instead likely on the Treasury Department’s new borrowing plan, due hours ahead of the interest-rate decision.

The so-called quarterly refunding announcement will reveal the extent to which the Treasury will ramp up sales of longer-term debt to fund a widening budget deficit. Those securities have been tumbling for weeks, even amid signals from Fed officials they’re “at or near” the end of rate hikes.

The US Treasury Department’s new borrowing plan, the so-called quarterly refunding announcement, will likely divert investor interest away from the Federal Reserve’s latest interest-rate decision this Wednesday.

The US Treasury reduced its estimate for federal borrowing for the current quarter thanks to stronger-than-expected revenues, offering some relief for investors concerned about the rapidly widening fiscal deficit.

The Treasury Department cut its net borrowing estimate for the October-through-December quarter to $776 billion, against the $852 billion predicted in late July. Debt managers kept their estimate for the Treasury’s cash balance for the end of December at $750 billion.

The new borrowing amount is somewhat smaller than many strategists’ forecasts. JPMorgan Chase & Co. had penciled $800 billion, with no change in the cash-balance estimate. Ten-year Treasury yields dipped slightly after Monday’s release at 4.86% as of 3:07 p.m. in New York.

Oil futures pulled back Monday, with global benchmark Brent crude sliding back below $90 a barrel after a ground incursion into the Gaza Strip by Israeli forces appeared to proceed at a cautious pace, helping to soothe worries over a broadening of the conflict.

West Texas Intermediate crude for December delivery fell $3, or 3.5%, to $82.54 a barrel on the New York Mercantile Exchange shortly before 1:30 p.m. ET. Meanwhile, December Brent crude -- the global benchmark -- was down $2.54, or 2.8%, at $88.94 a barrel on ICE Futures Europe.

Phil Flynn, senior market analyst at The Price Futures Group, wrote in his daily report that oil prices have declined "without an immediate disruption in global supplies and signs that Asian oil demand may be easing just a bit -- allowing the market to sell off."

The Biden administration on Monday issued the first U.S. executive order on artificial intelligence technology. The sweeping order will bring AI systems from the likes of Microsoft, Google, and Amazon under the scrutiny of various government departments and steer the sector away from a path of self-regulation.

The order requires developers of the most powerful AI systems to share safety test results and other critical information with the U.S. government. The National Institute of Standards and Technology will develop the standards for testing.