Stock market: S&P 500 advances thanks to the rebound of large technology companies

NEW YORK (AP) — U.S. stocks rose Monday, recouping some of the losses from their worst week since April.

The S&P 500 index was up 0.5% in midday trading and was on track to snap a three-day losing streak. It would be the index's first gain since hitting an all-time high on Tuesday.

The Dow Jones Industrial Average was up 21 points, or 0.2%, as of 11:30 a.m. ET, and the Nasdaq Composite was up 0.7%.

Nvidia rose 2.4%, and other Big Tech stocks also recovered some of their steep declines from the previous week to support the market. They had stuttered amid criticism that they had become too expensive after climb so high and are the main reasons why Wall Street has hit record highs. Two of them, Alphabet and Tesla, will announce their spring profit figures on Tuesday in an important test. They each rose at least 1.7%.

Treasury yields remained relatively stable in the bond market following the election of President Joe Biden. Biden says he won't run for re-electionThe move could unwind some markets that have seen Trump soar after Biden's weak performance in a debate last month raised expectations for a victory for former President Donald Trump.

Bank stocks have climbed on expectations of regulatory relief following the Republican victory, for example, and long-term Treasury yields have risen more than short-term ones on expectations of policies that could increase the U.S. government's already high debt.

But Biden’s withdrawal over the weekend wasn’t a big surprise to the market. It was a matter of when, not if, according to Brian Jacobsen, chief economist at Annex Wealth Management.

That could hurt Trump's chances of victory, but Democrats must first rally behind a candidate.

The yield on the 10-year Treasury note held steady at 4.24%, where it was late Friday. Short-term yields also held steady. The two-year yield remained at 4.52%, where it was late Friday.

Other segments of the market that could have swung sharply due to election uncertainty also remained mostly calm. The value of the U.S. dollar remained relatively stable against its major rivals.

Meanwhile, corporate earnings reports and U.S. economic growth could continue to draw markets’ attention. Analysts expect S&P 500 companies to post the strongest earnings growth in the latest quarter since late 2021, according to FactSet.

Truist Financial rose 2.9% after the bank reported net interest income, a key underlying measure of overall profit, that analysts called stronger than expected.

Verizon Communications fell 6.4% after reporting a profit for the latest quarter that met analysts' expectations but slightly lower revenue.

In addition to Alphabet and Tesla, dozens of other major U.S. companies will also release their latest quarterly results next week, including Coca-Cola, Ford and American Airlines.

Last week, airlines faced massive disruptions due to a global technology failurewhich appeared to have been resolved over the weekend, although airport delays continued on Monday.

A faulty software update has caused ravaged worldwide and led to the suspension of a number of flights by almost all airlines. The vast majority Early cancellations Monday The flights were operated by Delta Air Lines. Delta shares fell 1.9%.

Cybersecurity firm CrowdStrike said the issue believed to be causing the outage was not a security incident or cyberattack and that it had deployed a patch. The company said the problem was a faulty update sent to computers running Microsoft Windows.

Crowd strikes The stock fell 12.5% ​​on Monday after falling 11.1% on Friday.

On foreign stock markets, indices rose across much of Europe.

In Asia, Hong Kong's Hang Seng rose 1.3%, but stocks fell 0.6% in Shanghai after China's central bank unexpectedly cut a benchmark lending rate. The move came after the government recently reported that the world's second-largest economy grew 1.5%. slower than expected pace in the second quarter.

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AP Business reporter Matt Ott contributed to this report.