The markets moved higher on Monday as stocks tried to rebound from a losing week and investor sentiment got a boost from positive news out of China.
The investors are hoping that the week will be positive.
The stock market rebounded from last week's losses, with the Dow Jones Industrial Average rising 1%, over 300 points.
The reopening of China's Covid-19 restrictions provided a boost to global markets.
The Wall Street Journal reported that Chinese regulators will conclude a years-long probe into ride-sharing giant Didi and lift a ban on new users.
On the first day of trading after a stock split, Amazon saw its stock jump 2% on the first day of trading after a 20% stock split.
After falling 9% last Friday after CEO Musk warned of layoffs and said that he had a "super bad feeling" about the economy, shares of the electric-vehicle maker rose 2% and are now back in positive territory.
Despite markets opening the week on a positive note, all of the major averages are still trading below their 50- and 200-day moving averages.
There is a positive feedback loop formed amid growing evidence of disinflation, a peak in the hawkishness of the Fed, and China reopening. The disinflation pattern remains modest, China isn't fully abandoning its zero tolerance policy, and investor psychology is still precarious despite the recent rise in market sentiment.
The stock market continued to struggle for direction last week. The S&P 500 lost over 1% last week for its eighth negative week in a row, while the DOW fell 1% for its ninth down week in a row. With investors fearful that rising rates and inflation could lead to a slowdown in economic growth and a possible recession, volatility is still high. At each of its upcoming policy meetings in June and July, the Federal Reserve is expected to raise its interest rate by a small amount.
The upcoming consumer price index reading for May will be closely watched by markets. Inflation is expected to fall from April with some strategists hoping for further evidence that prices have peaked.
The stock market fell despite a strong jobs report.
The value of the stock of the company was wiped out by the negative feelings about the economy.
What happens to the market during an economic downturn? You may be surprised by the news.
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