Wall Street staged a late afternoon comeback on Monday, with all three major benchmarks closing up after fluctuating between gains and losses during the session, as traders looked for direction coming off April's negative performance. Investors also looked ahead to the Federal Reserve's upcoming monetary policy decision due later this week.
The Institution for Supply Management's manufacturing index reading for April fell to a 20-month low of 55.4 from March's print of 57.1, according to the ISM's report published Monday. While consensus economists had expected a reading of 57.6, readings about the neutral level of 50.0 still indicate expansion in a sector.
Here's how benchmarks started trading after market open:
Last month, the S&P 500 Index fell by 8.8%, marking its worst monthly performance since the start of the coronavirus pandemic in March 2020. Tech stocks were some of the worst hit by the month's sell-off, with the Nasdaq Composite dropping by 13% for its worst month since October 2008--when Wall Street was grappling with the financial crisis.
S&P 500 Index: +0.09% or +3.80 points to 4,135.73
The central bank is expected to raise rates by 50 basis points at the end of its Federal Open Market Committee meeting on Wednesday, following a 25 basis point hike issued in March. That rate hike brought the Fed's target range to between 0.25% and 0.50% and brought the low end of the range above zero for the first time since March 2020.
Dow Jones Industrial Average: +0.24% or +80.64 points to 33,057.85
Here's how the market settled on Monday:
Nasdaq Composite Index: -0.05% or -6.49 points to 12,328.15
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Biden administration to provide $3.1 billion for U.S. electric vehicle battery manufacturing:
The Biden administration announced Monday it will provide $3.1 billion in funding from the Bipartisan Infrastructure Law enacted in 2021 to support efforts to make electric vehicle batteries and other components in the United States.
The funding will aid plans by U.S. companies to build new factories and update existing ones to make EV batteries and other related parts. Separately, the U.S. Department of Energy said an additional $60 million will be available to support the reuse and recycling of used EV batteries, CNBC reports.
Previously, the White House has said that it plans to have fully electric vehicle to make up over half of U.S. new-vehicle sales by 2030.
U.S. manufacturing unexpectedly dipped in April:
The U.S. manufacturing sector expanded at a slower-than-expected rate last month as ongoing supply chain disruptions and inflationary pressures impacted output.
The Institution for Supply Management's manufacturing index reading for April fell to a 20-month low of 55.4 from March's print of 57.1, according to the ISM's report published Monday. While consensus economists had expected a reading of 57.6, readings about the neutral level of 50.0 still indicate expansion in a sector.
Here's how benchmarks started trading after market open:
S&P 500 Index: +0.09% or +3.80 points to 4,135.73
Dow Jones Industrial Average: +0.24% or +80.64 points to 33,057.85
Nasdaq Composite Index: -0.05% or -6.49 points to 12,328.15
