Stocks shook off a disappointing report on Chinese gross domestic product to post broad-based gains Monday.
Easing fears of recession helped markets continue last week's rally, which was fueled in part by better-than-expected readings on inflation. Market participants also bid up equities ahead of a busy earnings calendar this week.
Markets started Monday in muted fashion after China said its economy grew by 6.3% from a year ago, missing expectations by a wide margin. Making matters worse, GDP expanded by just 0.8% quarter-on-quarter. In related data, the unemployment rate among people ages 16 to 24 hit a record of 21.3% in June.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
China's economy has failed to bounce back as expected from its COVID-19 nadir, putting pressure on global commodities markets and throwing global economic growth forecasts into question.
Market participants decided to focus on matters closer to home, however, taking heart in last week's reading on inflation that suggests the Federal Reserve could raise interest rates just one more time this year.
The slower pace of inflation seen in both consumer and producer prices could mean that the economy is on a glide path for a so-called soft landing. Bringing inflation under control without causing a recession — and high unemployment — looks increasingly within reach, experts say.
"The probability of a U.S. recession has fallen further as both recent data and ongoing fundamentals point to rapid — and mostly painless — disinflation from here," says Goldman Sachs Chief Economist Jan Hatzius.
In single-stock news, Tesla (TSLA), which will report second-quarter earnings after markets close Wednesday, saw shares add 3.2% after the first model of its long-awaited Cybertruck finally rolled off the assembly line over the weekend.
Shareholders in Ford Motor (F) had another day entirely. F stock slumped nearly 6% after the company announced significant price cuts for all versions of its electric F-150 Lightning pickup. Prices for some of the less expensive versions of the EV pickup truck will be almost $10,000 cheaper, Ford said. The move comes amid price cuts by Tesla and other EV manufacturers as they battle for market share.
At the closing bell, the blue-chip Dow Jones Industrial Average added 0.2% to end at 34,585, while the broader S&P 500 rose 0.4% to finish at 4,522. The tech-heavy Nasdaq Composite gained 0.9% to close at 14,244.
All 30 Dow Jones stocks ranked
Markets continue to build on impressive year-to-date gains thanks to easing inflation, lower recession odds and a possible end to the Fed's campaign of interest rate hikes. But, as always, caution is warranted.
As bright a year as it's been for equity investors, plenty of experts see dark skies ahead. Pricey stock valuations and gloomy earnings forecasts could very well squelch the market's rally in the back half of 2023, bears say.
Should such an abrupt change in sentiment come to pass... well, that's where Dow Jones stocks come in. This collection of blue chip companies and dividend growth stalwarts with their battleship-like balance sheets can offer something of a safe harbor in tempestuous market times. Have a look at how analysts rank all 30 Dow Jones stocks.
Related Content
-
You Don’t Want to Retire in Portugal: Here Are Three Tax Reasons WhyRetirement Taxes With the NHR benefit retiring and pension taxes increasing, you might rethink your retirement plans in Portugal.
-
Home Depot's Winning Ways Fueled Its 100,000% ReturnHome Depot's wide moat leaves little room for competition – and shareholders have profited as a result.
-
Stock Market Today: Stocks Swing Higher on Powell SpeechInvestors cheered after Fed Chair Powell repeated his confidence in the strength of the U.S. economy.
-
Stock Market Today: Dow Adds 485 Points After Trump's Tariff DelayThe White House said it will postpone tariffs on automotive imports from Canada and Mexico for one month.
-
Stock Market Today: Inflation Is Still a ThingInvestors, traders and speculators confront an increasingly complex landscape featuring new and familiar challenges.
-
Stock Market Today: It's Mostly Onward and Upward for EquitiesThe major U.S. equity indexes were mixed Friday but closed an eventful week for earnings and data modestly higher.
-
Stock Market Today: Stocks Pop on Time-Delayed TariffsAll three major U.S. equity indexes rallied to intraday highs following President Trump's latest trade moves.
-
How Do Tariffs Impact the Stock Market?There are plenty of moving parts when it comes to tariffs. Here, we look at what impact tariffs have on the stock market and your portfolio.
-
Stock Market Today: Investors Adjust to Earnings and GuidanceThe stock market struggles in a good way when it's measuring what's happening on the ground.
-
Tesla Stock Rallies Despite Earnings MissTesla stock is moving higher despite coming up short of expectations for its fourth quarter. Here's what you need to know.
