US stocks rose early in trading Monday as major indices tried to maintain the momentum from last week’s rally.
The S&P 500 rose 0.4% on opening, while the Dow Jones Industrial Average gained 50 points, or about 0.2%. The tech-heavy Nasdaq Composite rose 0.5%.
The moves follow a sharp rally on Friday, with the S&P 500 rising 3% during the session and over 6% for the week, the second best week of the year and the first weekly gain since late May. Still, the benchmark index is headed for its worst six months since 1970.
In the latest session, the Dow was up more than 800 points, or 2.7%, while the Nasdaq was up more than 3.3%, leading to weekly gains for the indices of over 5% and 7%, respectively.
Some Wall Street strategists are hopeful that the markets have bottomed out.
“As bad as [this year] has been for investors, the good news is that previous years, which fell by at least 15% mid-year, saw the last six months higher each time, with average returns of nearly 24%,” LPL Financial chief market strategist Ryan Detrick said. last week in a note.
JP Morgan strategist Marko Kolanovic also predicted that US stocks could rise as much as 7% this week as investors rebalance their portfolios at the end of the month, the second quarter and the first half of the year.
While sentiment on Wall Street seems bullish, investors are facing a slew of key economic reports and gains that could impact markets this week and test hopes for a comeback.
Quarterly results from Nike (NKE) and Micron (MU) will be closely watched for signs of rising inventories and slowing orders, as Target and some other retailers have recently warned about, reinforcing concerns about an economic slowdown in Corporate America. could increase.
Traders will also be dealing with a fairly fraught economic calendar this week, with the latest reading on core PCE inflation – the Federal Reserve’s preferred measure of consumer prices, the Conference Board’s consumer confidence survey, and manufacturing and housing reports reaching up to and including should appear on Friday.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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