STORY: U.S. stocks rallied for a second straight session on Monday, with the Dow gaining more than eight-tenths of a percent, the S&P 500 adding more than six-tenths and the Nasdaq climbing three-tenths of a percent.
Investors sought bargains after the Nasdaq and S&P 500 fell for four straight weeks.
Sam Stovall is chief investment strategist at CFRA Research.
“Well, I think investors are carrying on the optimism that was generated at the end of last week after the S&P 500 closed below the 10% decline threshold. And so I think investors are anticipating at least a counter-trend rally in the near term. And then after the FOMC meeting and press conference on Wednesday, I think they’ll decide whether this continuation can last for another week or so.”
The Federal Reserve is widely expected to keep rates unchanged at the conclusion of its two-day policy meeting on Wednesday, according to CME’s FedWatch Tool.
The central bank will also announce economic projections, giving the most tangible evidence yet of how its policymakers view the likely impact of President Trump’s policies that have clouded a previously solid economic outlook.
Stocks on the move Monday included Tesla, which stumbled almost 5% after brokerage Mizuho lowered its price target on the EV maker’s stock, which is down more than 40% for the year.
Shares of quantum computing stocks D-Wave Quantum and Quantum Corp spiked as Nvidia kicked off its annual conference, where investors hoped the AI chip giant would breathe some life back into the beaten-down sector with new announcements.
And shares of Intel surged almost 7% after Reuters reported incoming CEO Lip-Bu Tan has considered significant changes to its chip manufacturing methods and AI strategies.
