Stocks rebounded 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 on Wall Street rising. Technology stocks 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, with Truist Financial rallying 3.4% after reporting better-than-expected profits. However, Tesla saw a 3.4% drop after announcing more price cuts over the weekend. The electric-vehicle company’s stock has already dropped more than 40% this year.
This week is significant for earnings reports, with roughly 30% of S&P 500 companies scheduled to announce their first-quarter results. Analysts are closely watching the performance of the “Magnificent Seven” companies, which were responsible for a significant portion of the index’s gains last year.
Verizon Communications kicked off the earnings season by reporting a drop in profit that was not as bad as expected. The company cited price increases and other measures to support its revenue. However, weaker-than-expected revenue for the first quarter led to a 4.7% drop in Verizon’s stock.
Overall, the S&P 500 rose 43.37 points to 5,010.60, the Dow gained 253.58 to 38,239.98, and the Nasdaq jumped 169.30 to 15,451.31. The Federal Reserve’s recent comments on interest rates have added pressure on companies to deliver strong profits and revenue.
In the bond market, the yield on the 10-year Treasury eased to 4.61% from 4.63% late Friday. Stocks in Asia and Europe also saw mixed results, with Hong Kong rising 1.8% and Shanghai falling 0.7%.
Analysts are urging caution amid concerns about inflation and stock valuations. While some believe that stock prices could continue to rise, others warn of a potential market correction, particularly in the tech sector.
Overall, investors are closely monitoring earnings reports and economic indicators to gauge the market’s direction in the coming weeks.
