U.S. stocks opened higher on Monday, with the Dow Jones Industrial Average (DJIA) gaining over 200 points, as investors reacted to the latest report on durable goods orders. The DJIA was up 0.7% shortly after the opening bell, the S&P 500 (SPX) rose 0.8%, and the Nasdaq Composite (COMP) gained 1.1%, according to FactSet data.
The report showed that orders for manufactured goods declined 4.5% in January, largely due to a decrease in passenger plane bookings. However, business investment rose at the fastest rate in five months.
The gains on Monday come after a tumultuous week on Wall Street. Last week, stocks fell sharply as investors worried about inflation. The Dow lost 3%, the S&P 500 dropped 2.7%, and the Nasdaq was down 3.3%.
The stock market has been volatile in recent months, as investors have weighed the economic impact of the coronavirus pandemic. After the vaccine rollout began, markets rallied on hopes of a swift economic recovery. However, the surge in inflation has caused investors to become more cautious.
Analysts have warned that rising inflation could lead to higher interest rates, which could in turn hurt corporate profits and lead to a sell-off in the markets. Investors are also keeping an eye on the Federal Reserve, which has said it is willing to tolerate higher inflation.
The economic outlook is still uncertain, and investors will be closely watching economic data in the coming weeks to gauge the health of the economy. The market could experience further volatility, as investors try to make sense of the latest economic data and adjust their portfolios accordingly.
In the meantime, analysts suggest that investors take a long-term view and focus on stocks that have strong fundamentals and are less sensitive to market swings. This could help investors weather the current market volatility and position themselves for long-term gains.
Overall, the stock market opened higher on Monday as investors took in the latest report on durable goods orders. The market has been volatile in recent months, and investors will be closely watching economic data in the coming weeks to gauge the health of the economy. Analysts suggest that investors take a long-term view and focus on stocks that have strong fundamentals and are less sensitive to market swings. This could help investors weather the current market volatility and position themselves for long-term gains.
