U.S. equities rose on Monday as the rally on Wall Street continued and traders prepared for a big week for retail earnings.
The Dow Jones Industrial Average added 151.39 points, or 0.45% to close at 33,912.44. The S&P 500 rose 0.4% to 4,297.14, while the Nasdaq Composite edged 0.62% higher to close at 13,128.05.
The Dow closed above its 200-day moving average for the first time since April 20, an indicator often viewed as a signal of where the market could be headed going forward.
Stocks opened the session lower, led by declines in energy and financials, before rebounding into positive territory. Consumer staples, communication services and consumer discretionary moved higher, while Tesla pulled technology into positive territory. Disney gained on news of hedge fund manager Dan Loeb’s stake.
The moves came despite disappointing economic data out of China, where the country’s central bank cut rates unexpectedly, raising concern over China’s economic recovery.
“I think what this market is doing a really good job at is making a lot of people feel very uncomfortable,” said Truist’s Keith Lerner. “The way the market’s trading, it’s already been braced for bad news, so once it gets it, it doesn’t hurt the market because it’s already prepared for it.”
The S&P 500 is coming off its fourth straight one-week gain, marking the benchmark’s longest winning streak since 2021 after economic data showed inflation pressures could be easing a bit. The Nasdaq and Dow also rose last week.
Investors this week are keeping an eye on earnings from big retailers including Home Depot, Walmart and Target, and listening for further clues on how their businesses have been affected by inflation.
