Stock Market Rebounds as U.S. Shares Rise on Monday

The U.S. stock market rebounded on Monday, with the S&P 500 up 1% in afternoon trading, aiming to break a three-day losing streak. The Dow Jones Industrial Average also saw a 0.3% increase, while the Nasdaq composite surged 1.4% higher.

One of the major drivers of the market’s climb was the resurgence of Big Tech stocks, including Nvidia, which rose 4.2%. These stocks had previously suffered sharp losses the week before but regained momentum on Monday. Alphabet and Tesla, two key players in the tech sector, will be reporting their quarterly earnings on Tuesday, further influencing market performance.

Additionally, Treasury yields rose following President Joe Biden’s announcement that he would not seek re-election. This decision may lead to a reversal of the market’s “Trump trade,” which initially gained traction after Biden’s lackluster debate performance raised expectations for a win by former President Donald Trump.

While Biden’s decision was not a significant surprise for the market, analysts continue to monitor corporate profits and economic growth. The upcoming week will see a slew of big U.S. companies reporting their quarterly results, including Coca-Cola, Ford, and American Airlines. Notably, airlines faced disruptions due to a global technology outage, with Delta Air Lines experiencing significant flight cancellations.

The outage, caused by a faulty software update, was not a cyberattack according to cybersecurity firm CrowdStrike. Despite the resolution of the issue, CrowdStrike’s stock experienced a decline. Stock markets in Europe rose, while Asian markets saw mixed performance following China’s unexpected benchmark interest rate reduction.

In summary, despite recent volatility, the U.S. stock market showed signs of recovery on Monday, driven by tech stock resurgence, corporate earnings reports, and global economic developments.