Dow jumps more than 200 points as stocks try to rebound from worst week of 2023: Live updates

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By Amit

Stocks jumped Monday as traders tried to recover some ground following the worst week of the year on Wall Street. Investors also looked ahead to another big week in retail earnings.

The Dow Jones Industrial Average gained 222 points, or 0.7%. The S&P 500 was up 0.8%, and the Nasdaq Composite rose 0.9%.

The moves follow Treasury yields easing, after the the 2-year rate on Monday hit its highest level since July 2007. It was last trading up about 3 basis points at 4.83%.

The S&P also got a boost from railroad operator Union Pacific, which climbed 10% after the company announced CEO Lance Fritz will step down this year.

Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve’s preferred inflation gauge.

The early 2023 rally seems to be fading as traders worry that rates could stay higher for longer. The Fed latest meeting minutes showed officials are determined to keep raising rates until inflation comes down.

“As we head into a seasonally weak period, with bets rising that the Fed may go with a 50bps increase instead of a 25bps in March, though still a minority opinion, the short-term market risk remains to the downside despite three straight weeks of losses,” said Louis Navellier, chairman and founder of growth investing firm Navellier & Associates. “The bears are dusting themselves off after getting sacked in January.”

On the economic data front, durable goods orders fell in January as consumers pulled back spending on big-ticket items.

In earnings, just 6% of the S&P 500 will report but investors are looking for insight into the consumer with several major retailers, restaurants, some travel and entertainment names as well as food companies set to report. Target, Costco, Lowe’s and Macy’s are some of the big names set to report earnings this week.

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