Stocks Rebound From Rout on Tech Rally; Oil Rises: Markets Wrap


The rally in U.S. stocks faltered in the final hour of trading, with a report that federal agents raided the offices of President Donald Trump’s lawyer adding to the swoon. Equities finished higher on the strength of gains in technology shares that bore the brunt of last week’s tariff-induced decline.

The S&P 500 Index pared an advance that had approached 2 percent to finish up 0.3 percent by the end of the session. The final leg down came after the New York Times reported that agents from the Federal Bureau of Investigation raided Michael Cohen’s office.

“It’s the culmination of negative events with potentially no solution on the horizon,” said Stephen Carl, head trader at Williams Capital Group. He cited news on “trade tariffs, Syria and the FBI raiding the offices of Michael Cohen, Trump’s personal lawyer” as all contributing to negative sentiment.

Fears that China and the U.S. would escalate a trade war took a back seat Monday after equities rose in Asia and Europe, though shares in sectors that would be hit hardest by a trade spat underperformed. Strength in chipmakers pushed the Nasdaq 100 Index up more than 2.5 percent, but that rally faded to 0.6 percent by the close.

The late selling damped what looked to be a stellar rebound from last week, when trade angst rattled global financial markets. Instead, political risk related to Special Counsel Robert Mueller’s investigation of Russian meddling in the U.S. election resurfaced. Tech still outperformed as investors began to shift focus to the earnings season that starts later in the week.



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