Stocks rose on choppy trade Monday as Wall Street looked to recover from its worst week in three months. The Dow Jones Industrial Average climbed almost 200 points, while the S&P 500 and Nasdaq Composite rose 0.7% and 0.76%, respectively.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): +0.69% or +26.56 points to 3,899.89
Dow Jones Industrial Average (NYSE: DIA): +0.64% or +197.26 points to 31,019.68
Nasdaq Composite Index (NASDAQ: QQQ): +0.76% or +86.62 points to 11,535.02
Stocks dropped last week as higher-than-expected inflation data ignited a sharp sell-off as investors fear the Federal Reserve will spark a recession in its efforts to stabilize prices. The S&P 500 dropped 4.7% for the week, while the Dow fell 4.1% and the Nasdaq tumbled 5.5%.
Investors are preparing for the central bank's upcoming two-day policy meeting starting Tuesday and concluding Wednesday with a speech from Fed Chair Jerome Powell. The Fed is expected to deliver another 75-basis-point interest rate hike.
Wall Street is also being cautious ahead of the third-quarter earnings season, as shipping giant FedEx (NYSE: FDX) warning that a global recession could be imminent and withdrew its full-year guidance, citing that macroeconomic trends have "significantly worsened."
In economic news, homebuilder sentiment fell three points to 46 in September, according to the National Association of Home Builders/ Wells Fargo Housing Market Index. Readings below the neutral level of 50 are considered negative. September's reading also marked the ninth straight month of declines.
"Buyer traffic is weak in many markets as more consumers remain on the sidelines due to high mortgage rates and home prices that are putting a new home purchase out of financial reach for many households," said NAHB Chair Jerry Konter in a statement.
Despite falling homebuilder sentiment, stocks including D.R. Horton (NYSE: DHI), Lennar (NYSE: LEN) and PulteGroup (NYSE: PHM) rose on Monday after KeyBanc double-upgraded to sector to overweight from underweight.
Elsewhere for stocks, Opendoor Technologies (NASDAQ: OPEN) fell on Monday after Bloomberg reported the company lost month on 43% of its August home resales. Like other companies in the housing market, Opendoor is facing headwinds of a housing recession and rising mortgage rates.
Coinbase (NASDAQ: COIN) shares fell 5.5% as the price of Bitcoin fell to its lowest level since June. Cryptocurrency prices usually fall with the broader market, and the crypto market is still reacting to the completion of the Ethereum merge.