Market Overview

The S&P 500 rose by 0.6%, and the Dow Jones Industrial Average increased by 1.0%, both closing at or near their highs after recovering from early session lows. The Nasdaq Composite, despite rebounding from a drop of up to 2.7%, ended the day 0.1% lower than Friday's close.

Factors Influencing the Market

The initial decline in equities was attributed to investor hesitation regarding the implementation of reciprocal tariffs scheduled for Wednesday. Weekend headlines further affected sentiment, with reports of the Trump administration considering broader tariffs, including a potential 20% universal tariff on all imports.

Impact on Treasuries

These developments triggered some safe-haven buying in Treasuries, which subsided as equity selling eased. The 10-year yield concluded one basis point lower at 4.25% after reaching 4.19%, while the 2-year yield remained unchanged at 3.91%, having touched 3.85% earlier.

Sector Performance

Many stocks contributed to the recovery, leading the equal-weighted S&P 500 to close 0.8% higher. However, mega-cap stocks such as NVIDIA (NVDA, Financial), Microsoft (MSFT, Financial), Amazon.com (AMZN, Financial), and Tesla (TSLA, Financial) were notable losers. The performance of AMZN and TSLA negatively impacted the consumer discretionary sector, which fell by 0.2% from Friday. Meanwhile, the other ten sectors recorded gains, with consumer staples (+1.6%) and financials (+1.3%) leading the way.

Year-to-Date Index Performance

• Dow Jones Industrial Average: -1.3% YTD
• S&P 500: -4.6% YTD
• S&P Midcap 400: -6.5% YTD
• Russell 2000: -9.8% YTD
• Nasdaq Composite: -10.4% YTD

Economic Data Review

Today's economic data included the March Chicago PMI, which came in at 47.6 versus the 45.3 consensus, with the prior figure revised to 45.0 from 45.5.

Upcoming Economic Data

On Tuesday, market participants will receive the following data:

• 9:45 ET: Final March S&P Global U.S. Manufacturing PMI (prior 49.8)
• 10:00 ET: February Construction Spending (consensus 0.4%; prior -0.2%)
• February job openings (prior 7.740 million)
• March ISM Manufacturing Index (consensus 49.8%; prior 50.3%)

Global Markets and Commodities

Overseas market performance was mixed:

• Europe: DAX -1.3%, FTSE -0.9%, CAC -1.6%
• Asia: Nikkei -4.1%, Hang Seng -1.3%, Shanghai -0.5%

Commodities saw varied movement:

Today's News

CoreWeave (CRWV, Financial), backed by Nvidia (NVDA, Financial), saw its shares decline by 9% on its second day of trading post-IPO. The cloud computing company, which went public last week with a $1.5 billion offering, faced challenges as it closed flat after opening below its offer price. Despite raising significant funds, CoreWeave's heavy reliance on Microsoft (MSFT, Financial) for revenue and a substantial net loss have contributed to market concerns.

Google's (GOOGL, Financial) YouTube has been crowned the "New King of All Media" by MoffetNathanson, with a valuation estimate of $550 billion. YouTube's dominance in TV content aggregation has surpassed traditional media giants and even streaming leader Netflix, highlighting its significant role in capturing audience engagement and driving revenue growth.

Apple (AAPL, Financial) shares rose by 1% during Monday trading, contrasting with declines in other tech giants like Nvidia (NVDA, Financial) and Tesla (TSLA, Financial). This uptick came amid reports of a rebound in foreign-branded smartphone shipments to China, signaling potential positive trends for iPhone sales in the region.

The Trump administration's plan to implement large-scale tariffs, dubbed "Liberation Day," is expected to perpetuate market uncertainty. Morgan Stanley anticipates further tariff negotiations, with potential increases on China and product-specific tariffs on Europe. Mexico and Canada might see temporary exemptions, reflecting the complexity of ongoing trade discussions.

Newsmax (NMAX, Financial) experienced a volatile debut on the stock market, closing up 722.5% at $82.25. The stock faced multiple trading halts due to volatility, with a significant volume of shares changing hands. The IPO raised $75 million, and CEO Chris Ruddy maintains over 81% voting power post-offering.

Red Cat Holdings (RCAT, Financial) reported a loss per share of $0.57 for its 2024 transition period, with revenues of $4.85 million. The company's shares dropped 0.60% post-market, influenced by a Kerrisdale Capital short report. Despite securing new orders, Red Cat faces challenges in justifying its market cap.

Agree Realty (ADC, Financial) announced a $625 million commercial paper program, aiming to leverage cost benefits in the commercial paper market. This initiative is expected to provide a liquidity backstop for the company's revolving credit facility, reflecting strategic financial management.

OpenAI, backed by Microsoft (MSFT, Financial), plans to release a new open language model, marking its first since GPT-2. The company is seeking feedback from developers to refine the model, highlighting its commitment to advancing AI technology and community collaboration.

Spire Global (SPIR, Financial) reported a GAAP EPS of -$4.26, missing estimates, despite a 13.2% revenue increase. The company's financial challenges, including debt issues and a failed maritime business sale, continue to impact investor confidence.

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