DJIA: 34,049.46, up 238.06
S&P 500: 4,296.12, up 24.34
Nasdaq: 13,004.85, up 165.56
Stocks rebound in volatile day
U.S. stocks were whipsawed in volatile trading Monday, with the major averages rebounding from early losses. The S&P 500 reversed course to rise 0.6%, while the Nasdaq Composite climbed 1.3%, with both benchmarks recovering from their third straight weekly drawdown and longest such losing streak since January. The Dow recouped a nearly 500-point drop to end 238 points higher.
Six of 11 S&P 500 sectors closed in positive territory, with growth-related groups pacing gains. Microsoft Corp. and Google parent Alphabet Inc. were among the standouts, rallying 2.4% and 2.9%, respectively. This week, these stocks are among the mega-cap tech names headlining the earnings slate, with more than 36% of S&P 500 companies posting results. Energy shares underperformed, with West Texas Intermediate crude falling 2.9% to $99.07/barrel. In other corporate news, Twitter, Inc. advanced 5.7% after its board unanimously agreed to let Elon Musk take the social media company private in a deal worth roughly $44 billion.
Still anxiety over looming central bank rate hikes remains a market overhang as recent remarks from Federal Reserve officials have increased expectations for a swifter path of monetary policy tightening. Also pressuring sentiment were concerns around COVID-19 lockdowns in China, which have entered a fifth week and are exacerbating worries around supply chain issues and the global growth outlook. Overnight, China’s Shanghai Composite retreated 5.1% for its worst session since February 2020.
Perceived safe haven assets caught a bid amid the lingering uncertainty. A gauge of the U.S. dollar jumped 0.5% to its highest level since March 2020, while the yield on the 10-year note slipped eight basis points (0.08%) to 2.82%.
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