Stock Market Today: Stocks Resume Rally on Easing Recession Fears
The major market indexes enjoyed broad-based gains ahead of a busy week for earnings.
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
-
Americans, Even With Higher Incomes, Are Feeling the SqueezeA 50-year mortgage probably isn’t the answer, but there are other ways to alleviate the continuing sting of high prices
-
Hiding the Truth From Your Financial Adviser Can Cost YouHiding assets or debt from a financial adviser damages the relationship as well as your finances. If you're not being fully transparent, it's time to ask why.
-
How to Manage a Disagreement With Your Financial AdviserKnowing how to deal with a disagreement can improve both your finances and your relationship with your planner.
-
If You'd Put $1,000 Into Caterpillar Stock 20 Years Ago, Here's What You'd Have TodayCaterpillar stock has been a remarkably resilient market beater for a very long time.
-
AI Unwind Takes 2% Off the Nasdaq: Stock Market TodayMarkets are paying more and more attention to hyperscalers' plans to spend more and more money on artificial intelligence.
-
I'm a 55-Year-Old Dad. Here’s How My 28-Year-Old Daughter Showed Me That AXP Is Still a Solid InvestmentAmerican Express stock is still a solid investment because management understands the value of its brand and is building a wide moat around it.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
Nasdaq Leads Ahead of Big Tech Earnings: Stock Market TodayPresident Donald Trump is making markets move based on personal and political as well as financial and economic priorities.
-
11 Stock Picks Beyond the Magnificent 7With my Mag-7-Plus strategy, you can own the mega caps individually or in ETFs and add in some smaller tech stocks to benefit from AI and other innovations.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
