A rally in some of the world’s largest technology companies spurred a rebound in stocks, following a brief slide fuelled by a weaker-than-expected report on US consumer confidence.
While most companies in the S& retreated, Tesla and Nvidia drove a gauge of the “Magnificent Seven” megacaps up over 1%. It was still a thin trading session at the start of a holiday-shortened week, with volume roughly 20% below the average of the past month.
“Primary uptrends remain intact for equities despite the recent profit-taking,” said Craig Johnson at Piper Sandler. “Given the short-term oversold conditions, we expect a Santa Claus rally to be a strong possibility this year.”
Earlier on Monday, stocks lost steam momentarily after data showed US consumer confidence unexpectedly sank for the first time in three months on concerns about the outlook for the economy.
“The economic outlook is deteriorating,” said Neil Dutta at Renaissance Macro Research.