NEW YORK (AP) — Most U.S. stocks experienced a modest rebound on Monday, recovering some of the steep losses sustained last week. The S&P 500 index rose 0.4%, marking its first gain in three days, while the Dow Jones Industrial Average dipped slightly by 55 points, or 0.1%. The Nasdaq composite, however, gained 0.6%.
CVS Health saw a notable increase of 5.4% after announcing the addition of four new directors to its board, following discussions with major investor Glenview Capital Management. The company’s CEO, Larry Robbins, is among the new directors.
Liberty Energy also contributed to the market’s upward momentum, rising 4.9% after President-elect Donald Trump appointed its CEO, Chris Wright, as Secretary of Energy.
In contrast, trading of Spirit Airlines’ stock was halted after the airline reached an agreement with its debtholders to enter Chapter 11 bankruptcy protection. Despite the restructuring, Spirit will continue its operations, though current stock investors are likely to see their holdings wiped out.
Overall, the S&P 500 gained 23 points, closing at 5,893.62. The Dow fell 55.39 to 43,389.60, while the Nasdaq composite rose 111.69 to 18,791.81.
The market regained some momentum after giving back more than half of its post-election gains at the end of last week. Following Trump’s presidential victory, the S&P 500 had risen nearly 4%, particularly benefiting bank stocks and smaller companies seen as likely winners from anticipated lower tax rates and deregulation.
However, recent investor sentiment has turned cautious as concerns mount about potential economic impacts of Trump’s policies. Moderna, for example, rose 7.2% on Monday but remains down since news broke that Trump plans to appoint Robert F. Kennedy Jr., a prominent anti-vaccine activist, to lead the Department of Health and Human Services.
Fears of rising inflation under Trump have also pushed Treasury yields higher, complicating the Federal Reserve’s efforts to lower interest rates to stimulate economic growth and maintain a healthy job market. Higher rates could pressure companies to deliver stronger profits to support their stock prices, which have increased more rapidly than their earnings.
Several major companies are set to report their quarterly results this week, including Nvidia on Wednesday, which has become a key player in the artificial intelligence sector with a market value nearing $3.5 trillion. Other notable companies reporting include Lowe’s and Walmart on Tuesday, Target on Wednesday, and Deere on Thursday.
The bond market saw Treasury yields edge lower, providing some stability to the stock market. The yield on the 10-year Treasury fell to 4.41% from 4.45% late Friday.
In international markets, European indexes ended mixed, while South Korea’s Kospi rose 2.2% following Samsung Electronics’ announcement of a stock buyback plan.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.
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