The S&P 500 and Dow rose on Monday, led by Bank and Apple, after sharp sales last week, while Tesla and chipmakers weighed on a slide technology-heavy Nasdaq.
Eight of the 11 major S&P sectors have advanced in primary trade, with financial and energy growth of more than 1% in each.
Banks gained 2.9%, led by a 3.5% jump in shares of JPMorgan Chase & Co, the largest U.S. lender by asset, raising its outlook for 2022 net interest income.
Battered growth stocks Apple Inc and Microsoft Corp rose 1.6% and 1.5%, respectively, giving the S&P 500 the biggest boost.
U.S. stock indices deepened year-to-date losses last week, adding to concerns about rising inflation and its impact on consumers and economic growth from Walmart Inc. and other retailers.
The benchmark S&P 500 fell more than 20% from its January 3 record that closed at one point high on Friday, pushing it to the brink of a bear market confirmation. The index is now down 17.9% from its all-time high.
“It doesn’t surprise me and as you bounce down you start to see it, an indication that equities are becoming more attractive,” said Christopher Grisanti, chief equity strategist at MAI Capital Management.
“The more people think the recession is going to happen, the less they will think about inflation. If the economy slows down … the Federal Reserve won’t have to raise interest rates like it used to. “
The readings of the first-quarter U.S. GDP, the PCE price index and the second estimate of April sustainable product data will be this week, perhaps indicating how the world’s largest economy is doing in the face of decades of high inflation.
The Federal Reserve’s May meeting minutes, due on Wednesday, will be closely analyzed for signs of how aggressively the US Federal Reserve plans to raise interest rates. Money is setting the market price in June and July with 50-point point rate hikes by the Fed.
At 10:04 am ET, the Dow Jones Industrial Average was up 271.16 points, or 0.87%, at 31,533.06 and the S&P 500 was up 13.44 points, or 0.34%, at 3,914.80.
The Nasdaq Composite was down 37.56 points, or 0.33%, at 11,317.06, down from Tesla Inc, Nvidia Corp and Amazon.com.
Cloud service provider VMware Inc. rose 16.9% over the weekend, chipmaker Broadcom Inc. said in a statement. Broadcom is down 4.9%.
Didi Global added 3.5% to U.S.-listed shares, while a majority of Chinese ride-hailing giant shareholders voted in favor of a listing plan on the New York Stock Exchange.
Progress issues have outperformed depreciators by a 1.46-to-1 ratio on the NYSE. Problems reducing the number of progressives for the 1.00-to-1 ratio on the Nasdaq.
The S&P index recorded a new 52-week high and 31 new lows, while Nasdaq recorded 15 new highs and 63 new lows. (Reporting by Devik Jain and Anisha Sarkar in Bangalore; Edited by Soumyadev Chakraborty, Shaunak Dasgupta and Maju Samuel)