Stock Market Update

[BRIEFING.COM] The stock market has traded higher at the start of the week in a buy-the-dip bid following Friday's declines. The Dow Jones Industrial Average is more than 100 points higher and the Nasdaq Composite trades more than 200 points higher. 

Mega caps have provided integral support to index gains. NVIDIA (NVDA 134.11, +4.27, +3.3%), Amazon.com (AMZN 231.97, +2.84, +1.2%), and Microsoft (MSFT 412.12, +2.41, +2.1%) are among the influential winners.

Positive responses to earnings news from Dow component McDonald's (MCD 308.46, +14.16, +4.8%), industrial automation company Rockwell Automation (ROK 297.05, +28.65, +10.7%), and cloud software company Monday.com (MNDY 335.27, +77.03, +30.0%) have contributed to the upside bias thus far.

The equity market, and the bond market, didn't react much to the news that President Trump said he will impose 25% tariffs on steel and aluminum today, according to Bloomberg.

Individual stocks related to the aforementioned commodities show outsized gains, though. Nucor (NUE 137.61, +7.35, +5.7%) and Alcoa (AA 37.44, +1.32, +3.7%) are standouts in that respect.

The market also received the New York Fed's Survey of Consumer Expectations, which garnered a muted response also. One-year ahead inflation expectations unchanged at 3.0%, three-year ahead expectations were also unchanged at 3.0%, and five-year ahead expectations rose by 0.3% to 3.0%.

The muted response to the tariff news and increased inflation expectations has supported the upside bias in stocks. The 10-yr yield is unchanged at 4.49% and the 2-yr yield is down two basis points to 4.26%.

There was no US economic data of note today.