Highlights
Stocks rebounded on Monday as investors bought Friday's dip and as rotation continued into the broader market out of the megacaps that paced the rally in recent years. The Dow Jones industrial average gained 1.1 percent, the S&P 500 rose 0.5 percent and the Nasdaq was up 0.6 percent. US Treasury yields rose after upbeat economic data. Oil prices dropped and the dollar was mixed versus major currency pairs.
Bond yields rose after the US Institute for Supply Management reported manufacturing business activity much stronger than expected in January. Big technology shares were split with Nvidia off on disappointing news about its investment plans for OpenAI. Other chipmakers had a good day, especially Sandisk and Western Digital. Apple and Amazon gained ahead of earnings releases.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.