Live Stock Market News Updates: Stocks Rise to Recover from Edge of Bear Market

U.S. stocks rose on Monday, with stocks emerging from a seven-week losing streak on firmer footing as investors shrugged off some recent volatility and digested further trade-related remarks from the administration. Biden.

The S&P 500 rose more than 0.5% just after markets opened. The index had closed Friday’s session flat in the day, but down 18.7% from its January 5 closing high to edge into a bear market, set once an index closes. at least 20% from a recent all-time high. .

The Dow gained more than 200 points, or 0.8%, and the Nasdaq also rose shortly after the market opened. The upward moves came after President Joe Biden said he was considering easing tariffs on Chinese goods that had been imposed under the previous administration. Biden’s remarks, made during a press conference with Japanese Prime Minister Fumio Kishida, came in turn after Treasury Secretary Janet Yellen said last week she was encouraging the Biden administration to remove the tariffs that she said imposed “more harm on consumers and businesses” in the US

The possibility of some easing in tariffs as the U.S. economy has grappled with high inflation rates for decades has helped at least temporarily boost risk assets that had been battered in recent weeks by jitters. by rising prices, more aggressive Federal Reserve monetary policies and international concerns in Ukraine. and China. On Friday, the S&P 500 also posted a seventh consecutive weekly loss last week in its longest losing streak since 2001. And at its worst moment on Friday, the index fell 20.6% from its January record. to trade bearish. market territory.

Traders work on the floor during the opening bell of the New York Stock Exchange in New York on May 16, 2022. and global economies continue. (Photo by TIMOTHY A. CLARY/AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Since World War II, there have been 12 formal bear markets for the S&P 500, and 17 including “near-bear markets,” or periods when the index has fallen more than 19%, according to Ryan Detrick, equity strategist. Head of Financial Markets at LPL. Of these, the average drop was around 29.6% and lasted an average of 11.4 months.

However, when bear markets coincide with recessions, they tend to be worse, falling 34.8% on average and lasting 15 months, Detrick added. A recession tends to be expected after two consecutive quarters of negative GDP (gross domestic product) growth.

Traders are expected to receive the second estimate of first-quarter US GDP later this week, which was reported last month in the first estimate to have contracted at an annualized rate of 1.4%. More recent economic data, however, showed pockets of strength, with retail sales and some manufacturing data showing strength, while employment data began to weaken.

“I think the economy is doing better right now than the stock market is telling you,” Spouting Rock Asset Management chief strategist Rhys Williams told Yahoo Finance Live on Friday. “And I guess we’ll be fine with stocks and bonds over the summer.”

9:32 a.m. ET: Stocks open higher

Here are the top moves in the markets as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): +32.49 (+0.83%) to 3,933.85

  • Dow (^ DJI): Open at 31,261.90

  • Nasdaq (^IXIC): +48.89 (+0.43%) at 11,403.51

  • Raw (CL=F): -0.33$ (-0.30%) at $109.95 per barrel

  • Gold (CG=F): +$10.30 (+0.56%) at $1,852.40 per ounce

  • 10-year cash flow (^TNX): +5.2 bps for a yield of 2.8390%

7:23 a.m. ET: Stock futures gain more than 1%

  • S&P 500 Futures Contracts (ES=F): +47.5 points (+1.22%) to 3,947.00

  • Dow futures (JM=F): +346.00 points (+1.11%) to 31,559.00

  • Nasdaq futures contracts (NQ=F): +127.25 points (+1.07%) to 11,968.00

  • Raw (CL=F): +$1.08 (+0.98%) to $111.36

  • Gold (CG=F): +$16.90 (+0.92%) to $1,859.00 per ounce

  • 10-year cash flow (^TNX): +4.6 bps for a yield of 2.833%

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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