Dow jumps more than 200 points as stocks try to rebound from worst week of 2023
Stocks jumped Monday morning, as traders tried to recover some ground following the worst week of the year on Wall Street. Investors also looked ahead to another big week in retail earnings.
The Dow Jones Industrial Average gained 222 points, or 0.7%. The S&P 500 was up 0.8%, and the Nasdaq Composite rose 0.9%.
The moves follow Treasury yields easing, after the the 2-year rate on Monday hit its highest level since July 2007.
Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve’s preferred inflation gauge.
The early 2023 rally seems to be fading as investors absorb the minutes of the latest Fed meeting, which reiterated the central bank’s tough stance on inflation, as well as recent comments from Fed officials cautioning interest rates could rise higher and for longer than anticipated.
“As we head into a seasonally weak period, with bets rising that the Fed may go with a 50bps increase instead of a 25bps in March, though still a minority opinion, the short-term market risk remains to the downside despite three straight weeks of losses,” said Louis Navellier, chairman and founder of growth investing firm Navellier & Associates. “The bears are dusting themselves off after getting sacked in January.”
On the economic data front, durable goods orders fell in January as consumers pulled back spending on big-ticket items.
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