Stocks Starte The Week On A Positive – US Market Wrap

Stocks rebounded after their worst week since April as investors looked beyond Joe Biden ending his reelection campaign to focus on the start of the tech earnings season.

Sky-high valuations and seasonal weakness have prompted several market downturn warnings, while traders are also dealing with political uncertainty. Despite the numerous headlines that followed Biden’s decision to get out of the race and back Kamala Harris, there was a sense of serenity on Monday. Volatility reduced when dip buyers emerged.

The S&P 500 has risen the highest since early June. The Nasdaq 100 gained 1.5%. A barometer of the “Magnificent Seven” megacaps rose roughly 2.5%, boosted by increases in Tesla and NVIDIA The Russell 2000 index of smaller corporations rose 1.7%. CrowdStrike plummeted amid the ongoing impact from a defective software upgrade.

Treasury yields edged higher, setting the stage for this week’s readings on the economy as well as the Federal Reserve’s preferred inflation gauge. For much of July, bets on a rate cut in September drove shorter-term bonds up – narrowing the gap with longer-dated maturities. The dollar wavered Monday.