The Dow Jones Industrial Average and other indexes wavered throughout much of Monday's session, but ultimately ended the day in positive territory after a Federal Reserve governor sounded an optimistic tone on rate cuts. All three major indexes started strong, edged into negative ground, surged again and ultimately settled back with gains of less than 1% on the stock market today.
Among the winners: Automakers got a lift after President Donald Trump offered transition assistance. Palantir Technologies and Apple were outperforming. And Goldman Sachs rose following an earnings beat on the stock market today.
Stocks made a positive start as they looked to add to last week's gains before the bears fought back. Then, the Dow Jones Industrial Average rallied out of the red to gain 318 points at the close, or 0.8%. Apple climbed more than 2% while Goldman Sachs gained nearly 2%. Travelers and Walmart also shined.
Health insurer UnitedHealth and Amazon.com lagged. Nvidia wavered and ultimately finished in the red, down 0.2%.
The Nasdaq composite, which fared best initially, finished the day 0.6% higher. Chinese Pinduoduo parent PDD stood out with a gain of nearly 5%. Cancer detection stock Grail did even better, rising nearly 7%.
Data analytics play Palantir was also strong, jumping nearly 5% on news it is selling an artificial-intelligence-enabled warfare fighting system to NATO. The retail investor favorite is fighting to recapture its 50-day moving average, MarketSurge analysis shows.
The S&P 500 climbed 0.8%. S&P 500 sectors were nearly all positive on the stock market today. Utilities, real estate and consumer staples fared best. Consumer discretionary made the smallest gain.
Stock Market Today: Enphase Energy Shines
Charles River Laboratories did well on the S&P, surging nearly 7%. Enphase Energy was up more than 5%, while First Solar popped more than 4%. DaVita lagged, dipping 3%. The dialysis firm fell after it was hit by a ransomware attack, though it continues to deliver patient care.
Volume was mixed vs. the same time on Friday. It was higher on the Nasdaq but lower on the New York Stock Exchange. Advancers beat decliners by nearly 3-to-1 on the Nasdaq and more than 4-to-1 on the NYSE.
Small caps fought their way out of negative territory, with the Russell 2000 index popping more than 1%. The index remains well below its 50-day and 200-day moving averages.
Growth stocks were doing better. The Innovator IBD 50 exchange traded fund jumped 2.1%. The fund is trying to overcome resistance at its 21-day exponential moving average, according to MarketSurge data.
More Stocks Test Entries
Some stocks tried to clear entries amid the positive action. Casella Waste Systems cleared a flat-base buy point of 116.31. This is an early-stage pattern, a bonus.
Overall performance is strong for the waste management play, with its IBD Composite Rating sitting at 92 out of 99. Earnings are seen rising 2% this year before accelerating to 44% growth in 2025.
Institutions have been net buyers of the stock of late, with its Accumulation/Distribution Rating sitting at B. In total, 63% of shares are held by funds.
Generic-drug play ANI Pharmaceuticals briefly cleared a long cup-with-handle base entry of 69.45 before retreating at the close. Its Earnings Per Share Rating of 70 is not ideal, but Wall Street expects earnings to ramp up 22% this year.
It is in the top 8% of issues in terms of price performance over the past 12 months. The stock has gained around 25% so far this year.
3:28 p.m. ET
Fed Governor Sees Rate Cuts Ahead
Federal Reserve Gov. Christopher Waller helped give investors some confidence by saying he sees rate cuts on the horizon. He outlined two different scenarios taking into account the effect of President Donald Trump's tariffs on the economy during a speech in St. Louis.
Waller believes higher and longer-lasting levies would cause inflation to jump in the 4% to 5% range before moderating due to an increase in unemployment.
"If the slowdown is significant and even threatens a recession, then I would expect to favor cutting the (Federal Open Market Committee's) policy rate sooner, and to a greater extent than I had previously thought," he said.
However, he expects inflation would reach around 3% before dissipating in a lower-tariff scenario.
"With a fairly small tariff effect on inflation, I would expect inflation to continue on its path down toward our 2% target," Waller said. "In this case, 'good news' rate cuts are very much on the table in the latter half of this year."
He also used the T-word — 'transitory' — when giving his thoughts on the effect tariffs will have on prices. Waller said he "can hear the howls already" over his use of the term.
"Yes, I am saying that I expect that elevated inflation would be temporary, and 'temporary' is another word for transitory," he said.
The word became infamous after then-Treasury Secretary Janet Yellen tried to play down concerns about inflation in June 2021 by saying rising costs were "transitory." She later said she regretted using the phrase.
2:28 p.m. ET
Auto Stocks Pop After Trump Mulls 'Help'
Auto stocks were given a boost after President Donald Trump said he is looking to provide "help" to automakers.
"I'm looking for something to help some of the car companies, where they're switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time, because they're going to make them here," Trump said.
Because of this he said he is "talking about" offering some relief to the auto companies.
The move provided an immediate boost to stock prices. Ford jumped more than 4%, General Motors popped more than 3% and Chrysler-parent Stellantis surged by more than 5%.
12:50 p.m. ET
New Fed Survey Shows Rising Employment Fears
The New York Fed's monthly Survey of Consumer Expectations showed respondents are increasingly worried about the labor market.
Respondents who believed the unemployment rate would be higher a year from now rose to 44%. This was up 4.6% on the last reading. It was also the highest reading since April 2020, during the Covid pandemic.
Inflation expectations were mixed, rising by 0.5% to 3.6% for one year ahead, the highest reading since October 2023. It held steady at 3% for three years ahead and slipped by 0.1% to 2.9% for the horizon that looks out five years.
Just 33.8% of respondents believe the stock market will be higher a year from now. This was the lowest reading since June 2022.
Stock Market Today: Leaderboard Name Tests Entry
While the stock market has been hit hard of late, Monday's action was relatively bullish. It helped Leaderboard Watchlist name ADMA Biologics hit a cup-with-handle buy point of 20.70.
The company makes specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases.
Overall strong performance is reflected in its IBD Composite Rating of 98. Analysts see earnings rising 45% this year before slowing to 38% growth in 2026, according to MarketSurge data.
With IBD currently recommending exposure at the 0% to 20% level, this may be one to watch for now to see whether the breakout can make progress.
Intel Stock Higher On Altera Sale
Intel stock gained on the news it has agreed to sell its majority stake in chip firm Altera to private equity group Silver Lake.
The troubled semiconductor giant is trying to raise funds after falling behind the likes of Nvidia and Advanced Micro Devices in the artificial intelligence race.
The deal will see Silver Lake acquire 51% of Altera at a valuation of $8.75 billion, Intel said. This is about half what Intel paid for it a decade ago. The firm will retain a 49% stake in the business.
Altera makes programmable chips. Kenneth Hao, Silver Lake chairman and managing partner, said Altera will focus efforts on "emerging AI-driven markets such as edge computing and robotics."
Intel entered exclusive negotiations with Silver Lake earlier this year
While off highs, Intel stock was up nearly 3% on the stock market today. It remains below its 50-day and 200-day moving averages.
10:50 a.m. ET
Stock Market Today: Trump Tariff Moves Boost Stocks
Stocks were left reeling after the so-called "Liberation Day" tariffs ended up being much heavier than analysts had expected. But the Trump administration has made moves to cushion the blow of late, with its latest trade policy shift helping technology hardware firms like Apple and Super Micro Computer, as well as semiconductor plays such as Nvidia.
The reason is smartphones, servers, memory chips, solar cells and some other categories of technology products will be exempt from the sweeping tariffs, guidance from U.S. Customs and Border Protection revealed late Friday. This is a big reprieve for technology companies that manufacture products in China.
The electronics exemptions cover some $385 billion worth of 2024 imports, or roughly 12% of the total. That includes $100 billion from China, or 23% of 2024 imports. The average tariff on electronics plunged from 45% to 5%.
But they are not out of the woods completely. Commerce Secretary Howard Lutnick said Sunday separate levies will be imposed on many tech products in a month or two due to an investigation into semiconductors under Section 232 trade law.
President Donald Trump himself also took to Truth Social to say that "NOBODY is getting 'off the hook'" on tariffs. Instead, he said they are being moved to a "different tariff 'bucket'" and said his administration is "taking a look at semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN."
Goldman Sachs Earnings Boost Shares
Bank stock Goldman Sachs was higher in early action after the firm turned in better-than-expected results for the first quarter.
Earnings surged 22% to $14.12 a share while revenue increased 6% to $15.06 billion. Analysts expected earnings of $12.33 a share on $14.77 billion in revenue.
The firm allocated $287 million in provisions for credit losses. This was lower than the $318 million set aside during the first quarter of 2024 and the $351 million in the fourth quarter.
Chief Executive David Solomon said the firm is entering a "markedly different operating environment than earlier this year" in the second quarter.
Goldman Sachs stock rose more than 1%, but was off opening highs. It remains stuck below its 50-day and 200-day moving averages.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
