US Stock Market Rebounds Led by Tech Surge

The stock market closed higher on Monday, reversing recent losses, particularly in the tech sector. This shift came as investors awaited developments in artificial intelligence (AI) and upcoming guidance from the Federal Reserve.

Market Gains: All major indices rose. The Dow Jones Industrial Average gained 0.2%, the S&P 500 climbed 0.63%, and the tech-heavy Nasdaq Composite saw the biggest increase of 0.82%.

Tech Sector Rebound: Tech stocks, which had been struggling for the past two weeks, led the market rally. This upswing coincided with the first day of Nvidia’s GTC Conference, where the company is expected to showcase advancements in AI. Analysts boosted their price targets for Nvidia, anticipating strong growth potential.

AI Influence: News reports suggesting Apple might integrate Google’s Gemini AI technology into iPhones further fueled the tech sector’s rise. Alphabet, Google’s parent company, saw its shares jump 4.6%.

Seasonal Trends and Future Outlook: Market analysts attributed the recent market volatility to seasonal weakness. They expect a more significant rally to begin in April with the start of the next earnings season.

FOMC in Focus: Investors are closely watching the Federal Open Market Committee meeting this week. While a rate hike is highly unlikely, expectations for a potential rate cut in June have slightly decreased.

Inflation-Linked Concerns: Recent inflation data exceeding expectations had previously caused market anxiety, with some investors fearing the Fed might maintain higher interest rates for longer.