According to preliminary data, the S&P 500 gained 3.74 points, or 0.09%, to end at 4,137.13 points, while the Nasdaq Composite lost 33.89 points, or 0.28%, to 12,038.56. The Dow Jones Industrial Average rose 69.40 points, or 0.21%, to 33,878.36. Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, said the Philadelphia semiconductor index would likely underperform because of increasing global tensions with
China.
U.S. stocks have largely held steady through the start of the earnings season on stronger-than-expected results from big banks, allaying concerns about a contagion from the regional banking crisis in March. Of the 90 S&P 500 companies that have reported first-quarter results so far, nearly 77% have topped analysts' estimates compared with the long-term average beat rate of 66%, as per Refinitiv IBES data. Early readings of first-quarter U.S. GDP, personal consumer expenditure index (PCE) for March, and April consumer confidence are among the data scheduled for release this week.
Mixed data last week cemented bets of a 25-basis-point rate hike by the Federal Reserve in May, with money market traders pricing in a 92% chance of such a move, according to CME Group's Fedwatch tool. Fed policymakers said in the past week that the central bank has more work to do to bring down inflation. U.S. Treasury yields eased following recent signs of slowing inflation and economic activity, though investors appeared increasingly concerned about a government spending stand-off and the potential for the United States to hit its debt ceiling sooner than expected. U.S. House of Representatives Speaker Kevin McCarthy said the House would vote on his spending and debt bill this week. Also dragging on the S&P 500 was air conditioner maker Carrier Global Corp after reports, citing unidentified sources, said the company was in advanced talks to acquire German industrial manufacturer Viessmann for more than $12 billion including debt.
In the penny-stock department, shares in once-popular home goods retailer Bed Bath & Beyond tumbled after it declared bankruptcy on Sunday. Retail rivals including Target Corp and Walmart Inc were gaining ground during Monday's session.
First Republic Bank shares rose ahead of the regional bank's quarterly report. The stock has sunk 88% this year, triggered by the U.S. banking crisis. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ US megapcap stocks recover somewhat after 2022 collapse ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)
