Stock Market Rebounds with Strong Gains
Wall Street saw a positive upswing on Monday as U.S. stocks continued to recover from last week’s sharp decline. The S&P 500 climbed 0.6% for its second consecutive day of gains after previously falling 10% below its record high. Meanwhile, the Dow Jones Industrial Average surged by 353 points, or 0.9%, and the Nasdaq composite rose by 0.3%.
Despite the recent rebound, market volatility remains high, with investors closely watching the Federal Reserve’s upcoming interest rate decision and ongoing concerns about trade policies. President Donald Trump’s tariff announcements have contributed to economic uncertainty, with businesses and households potentially slowing their spending in response. Confidence surveys have shown declines, and some companies have already indicated changes in consumer behavior.
A new report released Monday showed that U.S. retailers experienced weaker-than-expected revenues last month. However, the slowdown was mainly attributed to lower automobile sales and falling fuel prices, while other sectors performed closer to expectations. Treasury yields initially rose following the report’s release—typically a sign of optimism among bond investors—before fluctuating throughout the day.
Economic Concerns and Federal Reserve’s Role
Despite recent fears of an economic downturn, analysts suggest that the latest retail data points to a mild slowdown rather than an impending recession. Jennifer Timmerman, an investment strategy analyst at Wells Fargo Investment Institute, emphasized that the report signals only a “limited, modest economic slowdown” rather than a worsening economic crisis.
This comes after the U.S. economy ended the previous year on solid footing, fueled by optimism surrounding Trump’s pro-growth policies. While hiring levels remain stable, talk of a potential recession could dampen business and consumer confidence, further impacting the economy.
Federal Reserve Chair Jerome Powell is set to announce the central bank’s decision on interest rates on Wednesday. While no immediate rate changes are expected, investors are keenly awaiting Powell’s outlook for the rest of the year. Many anticipate that the Fed may cut interest rates two or three times in 2025. However, the central bank faces a balancing act—lowering rates too aggressively could reignite inflation, while keeping them too high for too long could slow economic growth by making borrowing more expensive.
Market Movers and Global Trends
Several major companies saw significant stock movements on Monday. Intel surged 6.8% following the appointment of semiconductor industry veteran Lip-Bu Tan as its CEO. PepsiCo gained 1.9% after announcing a $1.65 billion acquisition of the prebiotic soda brand Poppi. On the other hand, Tesla’s stock fell 4.8%, continuing its struggles this year as concerns grow over the company’s close association with Elon Musk and political controversies.
By the end of the trading session, the S&P 500 had risen by 36.18 points to 5,675.12, while the Dow Jones Industrial Average climbed to 41,841.63, and the Nasdaq composite reached 17,808.66.
Global markets also saw gains, with European and Asian indexes rising. Chinese stocks benefited from stronger-than-expected factory data, with government officials outlining new initiatives to boost consumer spending. Hong Kong’s stock market climbed 0.8%, while Shanghai’s gained 0.2%. Notably, international stock markets have outperformed Wall Street this year, reversing the trend of U.S. dominance in recent years.
