In the wake of Friday’s worsening sell-off, the Dow Jones Industrial Average rose on Monday. However, the index could not hold onto gains. On Monday, government bond yields rose to 2.99%, reaching a new high.
After releasing better-than-expected quarterly results, ON Semiconductor (ON) shares rose 5%. After falling 0.2% on Friday, Twitter (TWTR) is up 1% today. The shares of electric vehicle giant Tesla (TSLA) rose 1.5% Monday morning.
As the new stock market correction worsens, Dow Jones leaders American Express (AXP) and Cheniere Energy (LNG), Expedia (EXPE) and World Wrestling Entertainment (WWE) are among the top stocks doing it to be observed on Monday.
The IBD leaderboard includes Cheniere Energy, Microsoft, and Tesla. In addition, in last week’s Stocks Near Buy Zone column, Expedia and Palo Alto Networks were featured.
On Monday, the Dow Jones Industrial Average gained 0.2%, and the S&P 500 gained 0.3%. The Nasdaq composite index of high-tech companies rose 0.8%.
Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8%. SPY, SPDR’s S&P 500 exchange-traded fund, rose 0.3%.
The yield on the 10-year Treasury rose to 2.99% on Monday after closing at 2.88% on Friday. In recent weeks, Treasury yields have reached their highest level since December 2018, reaching 2.95%. Meanwhile, Texas Intermediate oil traded below $102 a barrel, down more than 3% over the past week.
The major stock indices fell sharply on Friday, hitting new correction lows. A rebound could trigger another rally attempt when the market opens in May. However, investors should be defensive as all three major indices have made new lows.
In other words, it means making money and receiving cash. Also, keeping a list of stocks that are doing well in a down market is a good way to prepare for the next stock market uptrend.
Dow Jones technical analysis:
The Dow Jones index remains defensive on the day. The gain proved short-lived and resulted in a spike that turned into a bearish 4-hour candle.