The Dow Jones Industrial Average closed higher on Monday after the major indexes hovered near break-even for much of the session. Tech stocks fared best among widely held groups, turning positive about an hour before the closing bell.
The Dow traded 0.6% higher at the close, while the S&P 500 held a gain of around 0.7%. The tech-heavy Nasdaq rose 0.8%, also fueled by a 0.8% uptick in the Russell 2000 small-cap index.
Volume is lower by double-digit percentages on both the Nasdaq and NYSE, compared with the clsoe on Friday, according to early data.
Stocks took a breather on Monday after last week's sharp decline dumped major indexes below support at their 50-day moving averages.
As Friday's Big Picture commented: "Since getting turned away near its 200-day moving average, the index has swan-dived below all its main moving averages. It is now down nearly 28% so far in 2022."
Wednesday's Federal Reserve decision is likely to have a major impact on the market. Investors have now priced in an 80% chance for a 75-basis-point hike as an inflation-fighting measure vs. a 20% likelihood for a full percentage-point boost, according to the Cboe's Fed Watch tracking tool.
Crude oil futures bounced late Monday from intraday lows and turned positive. The commodity rose around 0.5% to $85.53 per barrel. Meanwhile, the yield on the 10-year Treasury note rose slightly to 3.49% and extended last week's gains.
As for the S&P 500 sectors, materials and consumer discretionary stocks outperformed while real estate, health care and energy stocks underperformed.
Outside Dow Jones: Growth Stocks To Watch
The Innovator IBD 50 ETF, which reversed at 50-day moving average resistance last week, also pared losses on Monday, but was trading slightly higher at the close.
Energy drink maker Celsius led the upside among IBD 50 stocks, posting a gain of 5.3%. On the downside, Super Micro Computer led with losses of roughly 7%.
SMCI shares have set off the round-trip sell signal after breaking out from a 58.44 buy point in August.
The stock moved higher quickly during the advance, rapidly triggering the 20% profit-taking rule. The subsequent pullback accelerated, undercutting the 50-day line in Monday's market.
A handful of oil and gas firms also led the downside in the IBD 50. Viper Energy Partners, Northern Oil And Gas, Pioneer Natural Resources and SM Energy have all lost more than 1.5%.
Finally, shares of AutoZone beat earnings estimates for its fourth quarter this morning, as the auto repair firm announced solid profit and sales growth, amid recent bearish industry trends. However, AZO stock fell 3% after the news, undercutting the lower edge of a cup with handle buy zone entered on June 24.
