S&P500, Dow Jones gain on better-than-expected February retail sales data; Nasdaq Composite under pressure

Markets have been reeling from a sharp selloff in recent weeks, with the S&P 500 briefly dipping into correction territory—defined as a decline of more than 10 percent from recent highs.

The S&P 500 and Dow Jones Industrial Average edged higher on Monday as investors sought to recover from weeks of market turbulence, though uncertainty over trade policies and economic signals kept sentiment fragile.

The benchmark index climbed 0.3 percent, while the Dow Jones Industrial Average gained 198 points, or 0.5 percent. The Nasdaq Composite, however, remained under pressure, slipping 0.2 percent.

Also read: Religare commissions governance review, seeks funds from Burman Group

A key focus for investors was the latest retail sales data, which came in weaker than expected but not as dire as some feared. February’s retail sales rose 0.2 percent, missing the forecast of a 0.6 percent increase. However, when excluding auto sales, the 0.3 percent uptick aligned with economists’ projections, offering some reassurance about consumer spending trends.

Markets have been reeling from a sharp selloff in recent weeks, with the S&P 500 briefly dipping into correction territory—defined as a decline of more than 10 percent from recent highs. The index staged a strong 2 percent rebound on Friday, fueled by renewed buying in beaten-down technology stocks, including Nvidia and Palantir. But the broader market remains on shaky ground, with the Nasdaq still in correction territory, down 12 percent from its peak.

Read more: India bridges valuation gap with global markets, still expensive compared with EM historic averages

Investors continue to grapple with shifting U.S. trade policies and concerns about economic uncertainty. Recent remarks from policymakers indicate a willingness to endure short-term market volatility as part of broader efforts to overhaul regulatory frameworks and trade strategies.

Treasury Secretary Scott Bessent attempted to calm nerves, telling the US press that market corrections are a normal part of investing. “I’ve been in the business for 35 years, and corrections are healthy," he said. "What’s not healthy is unchecked euphoria—those are the conditions that led to the 2008 financial crisis."

Meanwhile, In Europe, stocks opened the week on a strong note, with the pan-European Stoxx 600 rising 0.8 percent by early London trade. Most sectors advanced, though investors remained watchful for signs of continued global market volatility.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.