4:16pm: Stocks rebound
Investor sentiment turned positive ahead of a big week of tech earnings, set to kick off tomorrow with Tesla Inc (NASDAQ:TSLA) after the closing bell.
The S&P 500 snapped a six-day losing streak to add 0.9% to close at 5,010 points, while the Dow Jones was up 0.7% at 38,240 points.
The tech-laden Nasdaq added 1.1% at 15,451 points as NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) rebounded by 4% after a 10% drop on Friday.
“Stock indices regained some lost ground at the start of the week as geopolitical tensions ease," Axel Rudolph, IG senior market analyst, commented.
Tesla shares closed down 3.4% at $142 after the EV maker unveiled another round of vehicle price cuts across its major markets, including the US, China, and Germany.
Meanwhile, 3D technology firm Matterport added 175% on the news it is being acquired by CoStar Group Inc (NASDAQ:CSGP) in a $1.6 billion cash and stock transaction.
2:00pm: Wall Street pushes higher
Wall Street is continuing to push higher post-lunch, with all three lead indexes building on their early morning gains.
The Dow Jones is up around 355 points to 38,341, while the S&P 500 lifted 56 points to 5,024.
The Nasdaq, which experienced the largest surge, rose 198 points to 15,480.
“There are probably two dynamics at work behind the better tone in global stock markets," Thierry Wizman at Macquarie explained. "The decline in gold and oil prices, and the steadiness (rather than rise) in the USD.
“For one, concern over a spreading regional war in the Middle-East has faded. The movement away from a wider conflagration, and back to a ’shadow war is probably why US bond yields are higher today.”
AI chip giant Nvidia traded around 4.5% higher as it continues to push back against last week's drop of nearly 14% - the worst week of trading for the company since September 2022.
Arm holdings, the semiconductor manufacturer, jumped around 7.5% too.
Slipping the other way was telecom giant Verizon, with shares dropping close to 3.5% despite reporting better-than-expected customer retention and a profit beat.
Wall Street's lift comes ahead of a busy week of earnings which will see the likes of Meta, Tesla, American Airlines, Microsoft and Alphabet all report.
12.03pm: US stocks hold onto morning's gains
US stocks have continued trading into lunchtime slightly ahead of the weekend's close, with the market still attempting to rebound from last week's pullback.
The Dow Jones lifted around 96 points to 38,082, while the Nasdaq and S&P 500 jumped by 68 and 20 points respectively.
Jay Woods, chief global strategist at Freedom Capital Markets, noted how recent falls in the market have resulted in around a 5% correction.
"This is something that occurs three times a year on average. However, when you live through it, it’s never fun," Woods said.
"The question now becomes is this a garden variety correction or is there something more to it?"
Woods says investor focus should be on company earnings, geopolitical concerns in the Middle East, the impact of Bitcoin's halving event and any change in plans by the Federal Reserve.
10.00am: Wall Streets sees green
A positive start on Wall Street saw the Nasdaq add 105 points to reach 15,387, as the Dow Jones and S&P 500 climbed 25 and 18 points respectively.
Seemingly easing tensions in the Middle East aided gains early on as attention turned to a host of big names set to report this week, including big tech firms and oil majors.
Buoying index on Monday though was NVIDIA Corp (NASDAQ:NVDA, ETR:NVD), with gains of 4.3% coming after analysts reiterated backing for the chip firm following falls last week.
Salesforce Inc (NYSE:CRM, ETR:FOO) gained 2% early on following reports the company had stepped back from talks to take over data-management software firm Informatica.
Amazon.com Inc (NASDAQ:AMZN, ETR:AMZ) also supplied upward pressure, leading a rally by big tech rivals Alphabet Inc (NASDAQ:GOOG), Apple Inc (NASDAQ:AAPL, ETR:APC) and Microsoft Corp (NASDAQ:MSFT) as traders geared up for earnings later this week.
“With updates from the likes of Microsoft, Meta, Alphabet, and Tesla [...] the so-called Magnificent seven remain in the limelight after a particularly torrid time for Nvidia and Tesla shareholders,” Scope Markets analyst Joshua Mahony commented.
“However, there is a fear that the AI premium paid for those big tech names could start to reverse unless we start to see those investments drive a meaningful improvement to the bottom line.”
7.08am: Wall Street on for strong start
The Nasdaq was expected to add 106 points as the trading week got underway on Monday, climbing to 17,287.
Futures had the Dow Jones and S&P 500 adding 188 and 27 points respectively in the meantime, as Wall Street’s attention turned from seemingly scaled-back Middle Eastern tensions to a busy week of earnings.
Verizon Communications Inc (NYSE:VZ, ETR:BAC) was set to kick off the week with earnings on Monday, followed by Tesla Inc (NASDAQ:TSLA), big tech and oil majors later on.
“There is a hope that this week’s big tech earnings could help alleviate some [...] selling pressure,” Scope Markets analyst Joshua Mahony commented.
Tesla emerged as one of Monday’s big-name losers in pre-market trading ahead of the results though.
This was as news of further price cuts across the likes of the US, China and Germany sent shares down 3%.
NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) looked set for a brighter start after falling last week, with shares up 1.6% in pre-market trading on positive comments from analysts over the weekend signalling ongoing strong demand.