NEW YORK.- Wall Street rebounded in the last minutes of the session on Monday, marked by volatility, and closed with gains in its main indicators despite concern about the next steps of the Federal Reserve and the conflict in Ukraine.
According to provisional data at the end of the day on the New York Stock Exchange, the Dow Jones rose 0.30% and stood at 34,366 units, while the selective S&P 500 advanced 0.29%, to 4,410 points.
The Nasdaq Composite Index rose a remarkable 0.63% to 13,855 points after falling almost 5% at its worst, amid sell-offs in the technology sector.
A resounding fall marked the day
For most of the day, US stocks fell after the S&P500’s worst week since March 2020, as investors awaited more corporate earnings results and a key policy decision from the Federal Reserve.
At one point during the day, the Dow Jones Industrial Average lost around 1,000 points, or 2.9%, a trend that would have represented the seventh consecutive day of decline. The S&P 500 lost 3.6% at the time. The Nasdaq Composite fell 4.5%, falling deeper into correction territory, CNBC reported.
The market trend this Monday followed a brutal week on Wall Street in the face of mixed corporate earnings and concerns about rising interest rates.
Although at the close of the day the shares reversed the resounding fall, what the day painted seemed anything but positive. On paper, had the crash materialized, that Monday pullback would have seen the S&P500 fall more than 11% this month, and be on track for its worst monthly decline since March 2020 and its worst January performance ever. The Dow was also headed for its biggest one-month loss since March 2020, posting a loss of more than 8%. Meanwhile, the Nasdaq would have fallen roughly 16% in January and is on track for its worst month since October 2008, when it plunged 17.7%.
The day was a rollercoaster ride, as the CBOE Volatility Index (VIX), known on Wall Street as the market’s “fear gauge,” hit its highest level since November 2020, breaking above the 38 level.
The fourth quarter earnings season has been mixed. While more than 74% of the S&P 500 companies that reported results beat Wall Street estimates, a couple of key companies defrauded investors last week, including Goldman Sachs and Netflix.
“What had initially been a decline fueled by the withdrawal of stimulus morphed last week to include earnings jitters,” Adam Crisafulli, founder of Vital Knowledge, said in a note. “Investors are therefore now concerned not only about the multiple placed on earnings, but also about the EPS (earnings per share) forecasts themselves.”
Investors are anticipating a slew of high-risk earnings reports from large-cap tech companies this week. Microsoft fell 5%, Apple lost 3.4% and Tesla fell 7.5% before the quarterly reports.
Part of this Article was originally published in English by Hannah Miao Y Yun Li for our sister chain CNBC.com. For more from CNBC enter here.
–
