US stocks climbed on Monday, with focus on more mixed economic data ahead of this week’s Federal Reserve policy meeting.
The S&P 500 (^GSPC) gained about 0.6% to rebound for a second day in row, while the Dow Jones Industrial Average (^DJI) gained more than 350 points, or more than 0.8%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.3% as “Magnificent 7” stocks, including Nvidia (NVDA) and Tesla (TSLA), faltered.
The gauges continued a climb after a sell-off that saw the S&P 500 enter correction territory and the Dow book its worst weekly performance since March 2023. Markets have been buffeted by economic slowdown fears and uncertainty over Trump’s unpredictable tariff policy.
Treasury Secretary Scott Bessent inflamed those worries on Sunday when he told NBC that he’s not worried about the recent slump in stocks, saying “corrections are healthy.” He added that there are “no guarantees” the US will avoid recession.
On Monday, rate-cut bets this year rose after a fresh print showed retail sales increased less than expected in February, while January’s reading was revised lower.
Monthly retail sales were up 0.2%, versus estimates of a 0.6% rise, while the previous month’s 0.9% drop was revised to a fall of 1.2%.
Meanwhile, the New York Fed’s reading on manufacturing activity in New York state showed a sharp pullback in March, with the headline business conditions index falling to -20 from a reading of 5.7 in February.
Wall Street is also bracing for the Federal Reserve’s two-day meeting starting Tuesday, where it is widely expected to stand pat on interest rates. Investors will look for any sign that Trump’s policies are changing the central bank’s views of the future of the economy.
