Stocks shook off a disappointing report on Chinese gross domestic product to post broad-based gains Monday.
Easing fears of recession helped markets continue last week's rally, which was fueled in part by better-than-expected readings on inflation. Market participants also bid up equities ahead of a busy earnings calendar this week.
Markets started Monday in muted fashion after China said its economy grew by 6.3% from a year ago, missing expectations by a wide margin. Making matters worse, GDP expanded by just 0.8% quarter-on-quarter. In related data, the unemployment rate among people ages 16 to 24 hit a record of 21.3% in June.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
China's economy has failed to bounce back as expected from its COVID-19 nadir, putting pressure on global commodities markets and throwing global economic growth forecasts into question.
Market participants decided to focus on matters closer to home, however, taking heart in last week's reading on inflation that suggests the Federal Reserve could raise interest rates just one more time this year.
The slower pace of inflation seen in both consumer and producer prices could mean that the economy is on a glide path for a so-called soft landing. Bringing inflation under control without causing a recession — and high unemployment — looks increasingly within reach, experts say.
"The probability of a U.S. recession has fallen further as both recent data and ongoing fundamentals point to rapid — and mostly painless — disinflation from here," says Goldman Sachs Chief Economist Jan Hatzius.
In single-stock news, Tesla (TSLA), which will report second-quarter earnings after markets close Wednesday, saw shares add 3.2% after the first model of its long-awaited Cybertruck finally rolled off the assembly line over the weekend.
Shareholders in Ford Motor (F) had another day entirely. F stock slumped nearly 6% after the company announced significant price cuts for all versions of its electric F-150 Lightning pickup. Prices for some of the less expensive versions of the EV pickup truck will be almost $10,000 cheaper, Ford said. The move comes amid price cuts by Tesla and other EV manufacturers as they battle for market share.
At the closing bell, the blue-chip Dow Jones Industrial Average added 0.2% to end at 34,585, while the broader S&P 500 rose 0.4% to finish at 4,522. The tech-heavy Nasdaq Composite gained 0.9% to close at 14,244.
All 30 Dow Jones stocks ranked
Markets continue to build on impressive year-to-date gains thanks to easing inflation, lower recession odds and a possible end to the Fed's campaign of interest rate hikes. But, as always, caution is warranted.
As bright a year as it's been for equity investors, plenty of experts see dark skies ahead. Pricey stock valuations and gloomy earnings forecasts could very well squelch the market's rally in the back half of 2023, bears say.
Should such an abrupt change in sentiment come to pass... well, that's where Dow Jones stocks come in. This collection of blue chip companies and dividend growth stalwarts with their battleship-like balance sheets can offer something of a safe harbor in tempestuous market times. Have a look at how analysts rank all 30 Dow Jones stocks.
Related Content
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Being an Executor is a Thankless Job: Do It Well AnywayYou can be a "good" executor of an estate, even though carrying out someone's final wishes can be challenging.
-
Question: Are You Planning for a 20- or 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Nasdaq Rises 2.7% as Musk Tweets TSLA Higher: Stock Market TodayMarkets follow through on Friday's reversal rally with even bigger moves on Monday.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
-
Elon Musk's $1 Trillion Pay Package Passes: What's at Stake for Tesla StockMore than 75% of Tesla shareholders voted to approve a massive pay package for CEO Elon Musk. Here's what it means for the Mag 7 stock.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
