Stocks rebounded sharply after last week's shellacking of equities, helped by easing geopolitical tensions and upcoming earnings reports from some of the market's biggest names.
At the close, the blue-chip Dow Jones Industrial Average was up 0.7% at 38,240, while the broader S&P 500 added 0.9% to 5,010. The tech-heavy Nasdaq Composite gained 1.1% to 15,451.
Monday's session marked a sharp reversal from last week's action, when the reality of higher-for-longer interest rates, some mixed quarterly results and rising upheaval in the Middle East sapped market participants' appetite for risk.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Much of the pressure across stocks last week, and really since the start of the month, has come from investors repricing the number of Federal Reserve rate cuts for this year," writes Anthony Saglimbene, chief market strategist at Ameriprise.
Sticky inflation data, better-than-expected economic growth and heightened geopolitical tensions have "increased uncertainty into the soft-landing narrative that helped propel stocks higher in the first quarter," the strategist adds.
Tesla cuts prices, again
Shares in Tesla (TSLA) continued their slide Monday, closing down 3.4% on news the electric vehicle (EV) maker cut prices in major markets, including China and Germany. The company slashed prices by up to $2,000 on vehicles such as the Model 3 and Model Y amid waning demand and increased competition, Reuters reported.
Tesla, which reports earnings after Tuesday's close, has lost more than 40% of its value for the year-to-date, making it the worst-performing Magnificent 7 stock by a wide margin.
Verizon results disappoint
Verizon Communications (VZ) slumped 4.6% Monday after the company posted quarterly revenue growth that fell short of Wall Street estimates. The only telecom in the Dow Jones also said it lost a net 158,000 users in its consumer wireless postpaid phone business in the first three months of 2024.
VZ stock is back to levels last seen in January, and is lagging the broader market by about 10 percentage points over the past 52 weeks.
Inflation data, busy earnings week on deck
Several major events could cause choppy trading in the days ahead. Big Tech will be in focus in a big way, with several Mag 7 stocks on this week's earnings calendar.
Meanwhile, the economic calendar features the March Personal Consumption and Expenditures (PCE) Price Index. The data measures consumer spending and is the Fed's preferred inflation gauge. Other reports include March new home sales, March pending home sales and durable goods orders.
Related content
- Analysts' Top S&P 500 Stocks to Buy Now
- Best Dividend Stocks for Dependable Dividend Growth
- Super Micro Computer: Why This Hot Stock Could Hit $1,500
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
