Stock Market Update

[BRIEFING.COM] The stock market kicked off the week with an upbeat start, bouncing back from Friday's declines in a buy-the-dip trade. The Nasdaq Composite jumped 1.0%, the S&P 500 rose 0.7%, and the Dow Jones Industrial Average closed 0.4% higher. The major indices closed their highs of the day with many stocks participating in index gains.

Mega-cap stocks played a crucial role, leading the upside charge. NVIDIA (NVDA 133.57, +3.73, +2.9%), Microsoft (MSFT 412.22, +2.47, +0.6%), and Amazon.com (AMZN 233.14, +3.99, +1.7%) were standouts from the space. The Vanguard Mega Cap Growth ETF (MGK) closed 1.0% higher.

Earnings reports also fueled buying interest. McDonald's (MCD 308.42, +14.12, +4.8%) posted strong results, along with Rockwell Automation (ROK 302.34, +33.94, +12.7%) and Monday.com (MNDY 326.58, +68.34, +26.5%). 

Sentiment wasn't impacted by President Trump's announcement of new 25% tariffs on steel and aluminum. Stocks directly linked to these metals saw noticeable gains. Nucor (NUE 137.53, +7.27, +5.6%) and Alcoa (AA 36.92, +0.80, +2.2%) were among the winners.

The New York Fed's Survey of Consumer Expectations also had little impact on the equity market. Inflation expectations remained stable, with one-year and three-year projections unchanged at 3.0%, while five-year expectations edged up by 0.3% to 3.0%.

On the bond side, yields were steady. The 10-year Treasury yield settled one basis point higher at 4.49%.

There was no US economic data of note today and tomorrow's calendar is limited to the January NFIB Small Business Optimism survey at 6:00 ET.

• Dow Jones Industrial Average: +4.5% YTD
• S&P Midcap 400: +2.8% YTD
• Russell 2000: +2.6% YTD
• S&P 500: +3.1% YTD
• Nasdaq Composite: +2.1% YTD