Markets Close Higher After Volatile Session
The Dow Jones Industrial Average and other major indexes closed Monday with modest gains, despite fluctuating throughout the day. Investor sentiment was boosted after Federal Reserve Governor Christopher Waller shared a positive outlook on potential interest rate cuts, sparking optimism across Wall Street.
All three indexes started strong, dipped briefly, then rebounded to close in positive territory. The Dow Jones rose by 318 points, or 0.8%, while the Nasdaq Composite gained 0.6% and the S&P 500 climbed 0.8%.
Top Gainers: Apple, Goldman Sachs, and Auto Stocks Surge
Apple Inc. led the tech rally with a gain of more than 2%, while Goldman Sachs climbed nearly 2% following a strong earnings beat. Automakers also surged after former President Donald Trump announced plans to offer support for U.S. car manufacturers, including Ford, General Motors, and Stellantis, which saw gains of over 4%, 3%, and 5% respectively.
Palantir Technologies Pops on AI-Driven NATO Deal
Palantir Technologies stock jumped nearly 5% after news broke that the company is selling an AI-powered defense platform to NATO. The move reignited interest from retail investors, as the stock attempts to reclaim its 50-day moving average, according to MarketSurge analysis.
S&P 500 Sector Performance
Most S&P 500 sectors finished in the green. The best-performing sectors were:
- Utilities
- Real Estate
- Consumer Staples
Consumer Discretionary posted the smallest gain of the day.
Energy and Biotech Stocks Shine
On the S&P 500, Enphase Energy rose over 5%, while First Solar gained 4%. Charles River Laboratories surged almost 7%, and Grail, a biotech firm focused on cancer detection, climbed nearly 7% on the Nasdaq.
Intel Rises on Altera Stake Sale
Intel Corp. advanced nearly 3% after announcing it would sell 51% of Altera, its programmable chip unit, to private equity giant Silver Lake for $8.75 billion. Intel retains 49% ownership, as it looks to raise funds amid fierce competition in the AI chip market.
Small-Caps and Growth Stocks Show Strength
The Russell 2000 index gained over 1%, breaking out of negative territory. Meanwhile, the Innovator IBD 50 ETF, which tracks top growth stocks, jumped 2.1%, signaling renewed momentum in the growth investing segment.
Fed Governor Waller: Rate Cuts Are Likely
Fed Governor Christopher Waller delivered encouraging remarks in a speech from St. Louis, stating that rate cuts could come sooner if tariffs cause a slowdown in the U.S. economy. He explained two potential scenarios:
- If tariffs spark inflation, the Fed may ease policy aggressively.
- If tariffs have minimal impact, inflation could continue dropping toward the 2% target, enabling “good news” rate cuts later this year.
He controversially used the word “transitory” to describe the likely temporary nature of inflation, echoing past debates over inflation forecasts.
Trump’s Tariff Policy Offers Relief to Tech Sector
The stock market responded positively after the administration announced tariff exemptions on key technology products, such as:
- Smartphones
- Servers
- Memory Chips
- Solar Panels
This exemption affects nearly $385 billion in imports, including $100 billion from China. Average tariffs for electronics dropped from 45% to just 5%.
However, Commerce Secretary Howard Lutnick confirmed that further tariffs are expected under Section 232, focusing on semiconductors and the broader electronics supply chain.
New York Fed Survey: Labor Market Concerns Rising
According to the latest New York Federal Reserve Survey, 44% of consumers expect the unemployment rate to rise in the next year — the highest level since April 2020. Inflation expectations climbed to 3.6% for the 12-month outlook, while confidence in future stock market performance fell to 33.8%, the lowest since mid-2022.
Watchlist Stocks: Casella Waste, ADMA Biologics, ANI Pharmaceuticals
Several growth stocks are approaching or testing buy points:
- Casella Waste Systems cleared a flat base entry of 116.31, with strong fundamentals and a 92 Composite Rating.
- ADMA Biologics broke out from a cup-with-handle base at 20.70, backed by strong earnings growth projections.
- ANI Pharmaceuticals briefly cleared a cup-with-handle base of 69.45, although it pulled back by the close. It has gained 25% year-to-date.
Goldman Sachs Earnings Impress Investors
Goldman Sachs reported Q1 earnings of $14.12 per share, up 22% year-over-year, with revenue hitting $15.06 billion. Analysts had expected lower results, boosting the stock over 1% in early trading. The bank also reduced provisions for credit losses to $287 million.
