US stocks rose for a second straight day on Monday, with the S&P 500 up 0.6% as investors look ahead to the Federal Reserve’s interest rate decision later in the week. The Dow Jones Industrial Average climbed 353 points and the Nasdaq composite added 0.3%. Despite concerns over President Donald Trump’s trade war, retailers saw weaker revenue last month than expected, with automobile sales contributing to the decline.
The economy has been showing signs of slowing down, but investors remain optimistic about growth. Treasury yields rose initially following the release of the retail sales report before pulling back. The Federal Reserve is expected to keep interest rates steady for now, but may cut them twice in 2025 if needed. Investors will be watching Chairman Jerome Powell’s comments on interest rate policy.
Technology stocks led the gains, with Intel and PepsiCo rising as their CEOs were announced. Tesla dropped 4.8% despite its name change at the helm of former board member Lip-Bu Tan. The electric-vehicle company’s struggles are attributed to concerns over brand alignment with Elon Musk. Markets abroad also rose, driven by China’s stronger-than-expected factory data and government efforts to boost consumer spending.
Source: https://apnews.com/article/stocks-markets-rates-tariffs-trump-669605bbde01213a2d43ea80ed8af103