Stocks rose Monday as traders regained their footing after the S&P 500 and Nasdaq Composite suffered their worst weekly declines in nearly two months.
The Dow Jones Industrial Average traded 197 points higher, or 0.58%. The S&P 500 climbed 0.6%, and the Nasdaq Composite advanced 0.69%.
Microsoft and Salesforce led the Dow’s gains, rising 3.6% and 1.8%, respectively. Tech was the best-performing S&P 500 sector, popping more than 1%.
All three major indexes are coming off a losing week. The Dow last week slipped 0.17%. Meanwhile, the S&P 500 fell 1.11%, and the tech-heavy Nasdaq slid 2.41%, marking their biggest weekly losses since December.
The moves came after Federal Reserve Chairman Jerome Powell said that there is still a long way to go in the fight against inflation. Powell also noted that interest rates could rise more than markets anticipate if inflation numbers do not abate, reversing some of the prior market optimism that rate hikes would soon ease.
Investors will get more inflation data this week. On Tuesday, January’s consumer price index report will be released, showing if price increases have continued to slow amid the central bank’s rate hikes.
“The market is starting to sense that the very comforting disinflation story is more complex than we’d like it to be,” Mohamed El-Erian, chief economic advisor at Allianz, said on CNBC’s “Squawk Box” on Monday.
The final leg of earnings season also continues this week, with Coca-Cola, Marriott, Cisco, Marathon and Paramount. So far, companies have reported worse-than expected results, making this year the worst earnings season in more than two decades, excluding recessions, according to Credit Suisse.
Source: www.cnbc.com
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