US stocks close higher after seven weeks of losses

Stocks closed higher on Wall Street on Monday after a seven-week decline that nearly ended the bull market that began in March 2020.

The S&P 500 rose 1.9%, the Dow Jones Industrial Average 2%, and the Nasdaq 1.6%. Banks and tech stocks posted the strongest gains. Inflation concerns are weighing on the market, keeping the major indexes in a slump recently.

The S&P 500 is having its longest weekly decline since 2001, when the dot-com bubble subsided. The yield on the 10-year Treasury note, which helps set mortgage rates, rose to 2.86%.

Banks have made strong gains along with rising bond yields, which in turn charge more interest on their loans. The 10-year Treasury yield rose to 2.86% from 2.77% late on Friday. Bank of America rose 5.9%.

Tech stocks have also had a significant impact. Apple is up 4% and Microsoft is up 3%. The sector has been uneven over the past few weeks and has sparked many big swings in the market recently.

VMware surged 24.8% after chipmaker Broadcom offered to buy the cloud computing company. JPMorgan Chase rose 6.2% after providing investors with an encouraging update on its financial outlook.

Retailers and some other companies that rely on direct consumer spending have lagged behind in the rest of the market. Amazon was flat. Last week’s series of disappointing earnings reports from major retailers raised concerns that consumers are easing their spending on a variety of commodities under pressure from rising inflation.

Continued inflation concerns are weighing on the market, keeping the leading indexes in a slump. The benchmark S&P 500 is down nearly 20% from its highs earlier this year, so the index at the heart of most workers’ 401(k) accounts has declined. bear market.

The impact of inflation on consumers and businesses has been a major concern for markets, and the Fed has attempted to mitigate this impact by aggressively raising interest rates. Inflation is exacerbated by large supply and demand cuts. Russian invasion of Ukraine Impact on energy prices. The supply chain has suffered even more. China’s recent series of blockades It covers several major cities facing an increase in COVID-19 cases.

Investors are concerned that the central bank could raise interest rates too much or move too quickly, hampering economic growth and potentially causing a recession. Investors on Wednesday will get a closer look at the Fed’s decision-making process with minutes from the latest policy-setting meeting.

Wall Street will also receive some economic updates from the Department of Commerce this week. On Thursday, it will release its report on first-quarter gross domestic product (GDP), and on Friday it will release data on personal income and expenses for April.

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