Wall Street shakes off midday slump, ends higher
Stocks indexes bounced back from a midday slump on Wall Street to finish higher Monday, adding to the market’s recent winning streak despite lingering worries about the resilience of the global economy amid surging inflation and geopolitical tensions.
The S&P 500 rose 0.7% after being down as much as 0.6%. The Dow Jones Industrial Average eked out a 0.3% gain after having been in the red much of the day, while the Nasdaq composite climbed from a 0.5% deficit to close 1.3% higher. The indexes were coming off two straight weekly gains.
Trading has remained choppy, even through the market’s recent run of gains, as investors try to gauge what’s next for inflation and the global economy amid the repercussions of Russia’s invasion of Ukraine.
The S&P 500 rose 32.46 points to 4,575.52. The index is now down 4% for the year. The Dow gained 94.65 points to 34,995.89, while the Nasdaq rose 185.60 points to 14,354.90. Smaller company stocks were little changed. The Russell 2000 index inched up 0.08 points, or less than 0.1%, to 2,078.06.
Technology stocks helped power much of the comeback in the benchmark S&P 500 along with retailers, cruise lines and other companies that rely on consumer spending. Microsoft rose 2.3%, and Tesla vaulted 8% for the biggest gain in the index.
Those gains outweighed a pullback in other sectors, including banks, which fell as bond yields eased lower, and energy stocks, which lost ground as crude oil prices closed sharply lower. Citigroup fell 1.4% and Exxon Mobile slid 2.8%.
U.S. crude oil slumped 7%, and Brent crude, the international standard, fell 6.8%. The drop followed news that China began its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai. That could put a dent in global demand for energy.
Bond yields eased back after shooting higher this month. The yield on the 10-year Treasury fell to 2.46% from 2.49% late Friday. Bond yields have been rising as Wall Street prepares for higher interest rates. The Federal Reserve has already announced a 0.25% hike of its key benchmark interest rate and is prepared to continue raising rates.
The Conference Board will release its consumer confidence index for March on Tuesday. The Commerce Department will release its February report for personal income and spending on Thursday and the Labor Department will release its employment report for March on Friday.
Company-specific news helped lift several stocks on an otherwise quiet day as the latest quarter nears its close and Wall Street prepares for the next round of corporate earnings. Tesla’s big stock price jump came after the electric car maker said it is considering another stock split. Plantronics jumped 52.6% after HP said it will buy the headset maker.
Gold for April delivery fell $14.40 to $1,939.80 an ounce. Silver for May delivery fell 42 cents to $25.20 an ounce, and May copper rose 3 cents to $4.73 a pound.