Stocks on Wall Street bounced back on Monday, with the S&P 500 climbing 0.9% to recover from last week’s losses, which were the worst in over a year. The Dow Jones Industrial Average also added 253 points, or 0.7%, while the Nasdaq composite jumped 1.1%.
The rally was broad-based, with most stocks across Wall Street rising. Technology stocks in the S&P 500 led the way, bouncing back from their worst week since the COVID crash of 2020. Nvidia surged 4.4%, and Alphabet climbed 1.4% as Treasury yields stabilized in the bond market.
Bank stocks also performed well, following some encouraging profit reports. Truist Financial rallied 3.4% after its profit for the start of the year exceeded analysts’ expectations.
However, Tesla saw a 3.4% drop after announcing more price cuts over the weekend. The electric-vehicle company has already seen its stock drop more than 40% this year and is set to report its first-quarter results on Tuesday.
This week is significant for earnings reports, with roughly 30% of S&P 500 companies scheduled to announce their first-quarter earnings. Analysts are closely watching the performance of the “Magnificent Seven” companies, which were responsible for a significant portion of the S&P 500’s gains last year.
Despite the positive day on Wall Street, there are concerns about inflation and interest rates. Federal Reserve officials have indicated that they may need to keep interest rates high to ensure inflation remains in check, disappointing investors who were hoping for rate cuts.
Overall, the stock market remains volatile, with analysts urging caution as stock prices continue to climb. The bond market also saw some movement, with the yield on the 10-year Treasury easing slightly.
Stocks in markets abroad showed mixed results, with gains in Hong Kong and declines in Shanghai. The Chinese central bank is monitoring the economy closely after better-than-expected growth in the first quarter.
In conclusion, while the stock market showed signs of recovery on Monday, investors remain cautious amid ongoing concerns about inflation and interest rates.
