Wall Street Rises as Tech Recovers After Selloff

💡 Tech stocks bounce back after a tumultuous week, but inflation concerns still linger.

The S&P 500 notched a strong gain on Monday, rebounding from last week's selloff. The tech-heavy Nasdaq Composite also surged, with the $QQQ ETF rising 2.5%. The Dow Jones Industrial Average, however, lagged behind, with a more modest 0.8% gain.

Tech Sector Leads the Charge

The tech sector, which had been one of the hardest hit during the recent selloff, led the charge higher on Monday. $AAPL rose 3.2%, while $MSFT gained 2.8%. The $QQQ ETF, which tracks the Nasdaq-100 index, surged 2.5%. The sector's rebound was driven by a combination of factors, including a decline in Treasury yields and a pickup in earnings expectations.

Inflation Concerns Persist

Despite the tech sector's strong rebound, inflation concerns remain a major overhang. The Consumer Price Index (CPI) rose 0.4% in February, beating expectations and reinforcing concerns about a potential recession. The Federal Reserve, which has been hiking interest rates to combat inflation, is likely to maintain its hawkish stance in the coming months.

Market Sentiment Improves

Market sentiment improved significantly on Monday, with the put-call ratio falling to 0.65. This suggests that investors are becoming more bullish, with the majority of traders expecting the market to move higher. The CBOE Volatility Index (VIX), which measures market fear, fell 10.3% to 24.3.

What It Means for Investors