Equities Recover ahead of US Data This Week – US Market Wrap

A renewed wave of dip buying fuelled a stock rebound after a selloff triggered by a recalibration of Federal Reserve wagers.

Almost 380 companies in the S&P 500 rose, wiping out a nearly 1% decline earlier Monday. Energy producers joined an oil rally, while banks rose ahead of the earnings season. That’s despite a slide that has engulfed tech titans such as Nvidia and Apple. The bond market moved slowly after a rout caused by fears of fewer Fed cuts amid persistent price pressures.

The S&P 500 increased by 0.2%. The Nasdaq 100 dropped 0.3%. The Dow Jones Industrial Average gained 0.9%. A gauge of the “Magnificent Seven” megacaps fell 0.4%. The Russell 2000 index of smaller firms rose 0.2%.

The yield on 10-year Treasuries rose three basis points to 4.79 percent. The dollar remained relatively stable. Oil has rallied to its highest level in five months.
This week, earnings season begins in earnest with financial sector reports. Banks such as JPMorgan and Wells Fargo are expected to post continued gains in trading and investment banking, which helped offset net interest income declines caused by higher deposits and sluggish loan demand.