Stocks extended their rally on Monday, fueled by an uptick in retail sales and a welcome break from political uncertainty that had recently pushed major indexes into correction territory. The Dow Jones Industrial Average led the way with a 0.9% gain, marking a 2.5% rise over the past two sessions—its strongest two-day stretch since early November. The S&P 500 rose 0.6%, while the Nasdaq Composite saw a 0.3% increase.
Relief Amid Calm Political Climate
Jay Woods, chief global strategist at Freedom Capital Markets, attributed some of the market’s relief to the absence of urgent trade-policy developments from the White House. “It’s been quiet on the tariff front, and quiet out of Washington,” Woods said. “This has given traders a pause, allowing us to avoid constant concerns about retaliatory tariffs or surprises.”
Volatility Resumes Amid Tariff Concerns
Recent volatility was sparked by President Trump’s tariff threats, which led the S&P 500 to experience its first correction since late 2023. Despite a market bounce on Friday, some experts, including Scott Bessent, noted that “corrections are healthy.” U.S. Treasury Secretary Janet Yellen also reassured markets over the weekend, calling market pullbacks “normal” and stating, “What’s not healthy is straight up.”
Retail Sales Data Spurs Market Optimism
Stock futures initially fell following Yellen’s comments, but the market reversed course after data from the Commerce Department showed that retail sales increased by a seasonally adjusted 0.2% in February. While economists had forecast a 0.6% rise, the data excluding automobile and auto-parts sales met expectations. “The numbers were weaker than expected, but they weren’t as bad as some feared,” said Que Nguyen, chief investment officer at Research Affiliates.
Market Focus Shifts to Upcoming Economic Reports
As concerns over weakening economic growth persist, investors will now focus on upcoming housing starts and building permits data, set for release Tuesday morning. Additionally, the Federal Reserve’s interest rate decision, due Wednesday, is highly anticipated, followed by a press conference from Fed Chair Jerome Powell. Jobless claims and existing-home sales data will be released Thursday.
S&P 500 Gainers and Losers
Among the biggest gainers on the S&P 500 were Intel, GE Vernova, and Domino’s Pizza. On the downside, Discover, Capital One, and Tesla saw losses. The health-services and industrial-services sectors led the index. Nvidia, however, was the biggest loser of the Dow industrials, with its stock falling by approximately 1.8%, continuing a decline of more than 10% this year.
Other Market Developments
Benchmark Treasury yields dipped slightly to 4.304%, down from 4.307% on Friday.
Gold prices reached a record high of $3,000 per troy ounce, marking a fifth consecutive day of gains.
International markets saw gains following positive economic data from China, alongside the announcement of plans to stimulate the Chinese economy. The Stoxx Europe 600, Japan’s Nikkei 225, and Hong Kong’s Hang Seng all posted moderate gains.
Bitcoin prices continued their rise, trading above $84,000.
Nvidia’s annual GTC developers conference, dubbed “AI Woodstock,” kicked off in San Jose, California, with a keynote scheduled for Tuesday by CEO Jensen Huang.
Looking Ahead
Investors will continue to monitor economic data and the Federal Reserve’s policy decisions as they navigate through these uncertain times.
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