Dow closes up 387 points, Nvidia leads Nasdaq gain of 1.22%

International oil prices have fallen sharply from recent highs, and after major Wall Street firms turned bullish on the market, U.S. stocks rebounded significantly on Monday. The Dow opened up 148 points, with gains expanding to as much as 617 points, reaching a high of 47,176 points. The S&P 500 once rose 1.47%, and the Nasdaq climbed as much as 1.88%.

Dow once surged 617 points; Nasdaq up 1.88% at one point

Among the heavyweight stocks, Nvidia’s annual AI conference started this week. Its stock closed up 1.6%, with a maximum intraday gain of 4.8%. Amazon jumped 2%, and Meta reportedly plans large-scale layoffs affecting 20% or more of its staff, with its stock rising 2.3%. Micron Technology will release earnings later this week, and its stock preemptively rose 3.7%. Financial stocks stabilized after declines, with Citigroup and Goldman Sachs both rising 1.6%.

Financial stocks stabilize; Citigroup and Goldman Sachs both up 1.6%

Despite the ongoing Iran conflict, Goldman Sachs expects the S&P 500 to eventually resume its upward trend, continuing the historical pattern where markets rebound after geopolitical events. Strategist Snyder said the basic scenario already reflects macroeconomic headwinds, with earnings continuing to grow. Although valuations are still high relative to historical levels, they are more reasonable than a few months ago.

Morgan Stanley and Goldman Sachs both optimistic on U.S. stocks

Morgan Stanley strategist Wilson believes he remains bullish on U.S. stocks over the next 6 to 12 months. He forecasts the S&P 500 to reach 7,800 points by the end of this year, about an 18% increase from last Friday’s close. Goldman Sachs’s Snyder has a target of 7,600 points.

At the close, U.S. markets gained: the Dow rose 387 points or 0.83%, to 46,946; the S&P 500 increased 1.01% to 6,699; the Nasdaq climbed 1.22% to 22,374; the Philadelphia Semiconductor Index rebounded 1.96%; and the Golden Dragon Index, reflecting Chinese concept stocks, rose 0.95% to 7,215. European stocks all gained, with the UK, France, and Germany up 0.55%, 0.31%, and 0.5%, respectively. Bitcoin, the leading cryptocurrency, briefly surged 3.86% to a six-week high of $74,512.

NY oil drops 5.28%; Brent rises 2.84%

Oil prices rose over 3% in early Asian trading, but by the close, NY crude fell 5.28% to $93.50 per barrel. Brent crude rose 2.84%, closing at $100.21, remaining above the psychological $100 mark for three consecutive days. U.S. Treasury Secretary Biesan denied during a CNBC interview that the U.S. government had intervened in energy derivatives markets.

U.S. industrial production in February increased 0.2% month-over-month, beating expectations of a 0.1% rise. However, the New York manufacturing index for March fell from 7.1 in February to -0.2, below the expected 3.9, indicating manufacturing activity is contracting as the index drops below zero.

FOMC meeting begins Tuesday with two days of policy discussions

The Federal Reserve’s two-day policy meeting begins Tuesday. Falling oil prices help ease inflation pressures, with the 10-year Treasury yield dropping as much as 7 basis points to 4.215%.

The U.S. dollar index briefly fell 0.7% to 99.66, while the euro rose 0.95% to $1.1528. The Japanese yen appreciated 0.56% to 158.85 against the dollar.

Spot gold rises 0.37% then pulls back

Spot gold initially rose 0.37%, reaching a high of $5,037.8 per ounce, but later retraced to $4,968.09, down 1.02%. No ceasefire signs from Iran, raising concerns that the upcoming U.S.-China summit may be postponed. Chicago soybean futures fell 5.71%, to $11.552 per bushel.