US stocks rally as investors weigh economic data, Trump policies

NEW YORK – US stocks gained for a second straight session on March 17 as investors sought bargains after the Nasdaq and S&P 500’s four-week tumble and assessed the latest economic data to gauge the impact of the Trump administration’s policies.

Retail sales rebounded marginally in February, but fell short of expectations, reflecting the increasing uncertainty over tariffs and large-scale firing of federal government employees. A separate report showed March factory activity in New York State plummeted the most in nearly two years.

“The only signs of a bounceback in spending from January’s weather-induced slump, and stocking up ahead of tariffs, was in online spending,” said Mr Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.

“Sentiment is often a horrible predictor of spending, but the good vibes that have propped up spending are now a distant memory.”

The Dow Jones Industrial Average rose 353.44 points, or 0.85 per cent, to 41,841.63, the S&P 500 gained 36.18 points, or 0.64 per cent, to 5,675.12 and the Nasdaq Composite gained 54.58 points, or 0.31 per cent, to 17,808.66.

In addition, US home builder sentiment dropped to a seven-month low in March as tariffs on imported materials raised construction costs.

When the Federal Reserve meets on March 19, it is widely expected to keep rates unchanged, according to CME’s FedWatch Tool.

Fed officials will also announce economic projections with their policy statement, giving the most tangible evidence yet of how US central bankers view the likely impact of Trump administration policies that have clouded a previously solid economic outlook.

The Federal Reserve Bank of Atlanta adjusted its forecast for first-quarter economic activity to show a 2.1 per cent contraction, down from the March 7 estimate of a 1.6 per cent contraction.

Stocks have

tumbled in recent weeks

, with the S&P 500 dropping last week by more than 10 per cent from its February record high, a drop that defines a correction. The market rebounded as investors shopped for shares that may fare better under US President Donald Trump’s policies.

The blue-chip Dow index stood roughly 3 per cent away from a correction after recent gains over the past two sessions, while the Nasdaq confirmed it was in correction territory on March 6.

Of the 11 major S&P sectors, real estate and energy led gains while consumer discretionary was the sole decliner.

Over the weekend, Treasury Secretary Scott Bessent warned in an interview that there are “no guarantees” the United States will escape a recession.

Tesla stumbled 4.79 per cent after brokerage Mizuho lowered its price target on the electric vehicle maker’s stock to US$430 from US$515. The stock is down 41 per cent on the year.

Quantum computing stocks such as D-Wave Quantum and Quantum Corp surged 10.15 per cent and 40.09 per cent, respectively, as artificial intelligence (AI) chipmaker Nvidia kicked off its annual conference.

Intel shot up 6.82 per cent after Reuters reported incoming chief executive Lip-Bu Tan has considered significant changes to its chip manufacturing methods and AI strategies.

Advancing issues outnumbered decliners for a 4.44-to-1 ratio on the NYSE and a 2.47-to-1 ratio on the Nasdaq.

The S&P 500 posted nine new 52-week highs and one new low, while the Nasdaq Composite recorded 45 new highs and 111 new lows.

Volume on US exchanges was 13.86 billion shares, compared with the 16.53 billion average for the full session over the last 20 trading days. REUTERS