Tech Giants Drive Stock Market Rebound

A significant rally among the world's largest technology companies helped stocks recover from a brief slide, which was triggered by a weaker-than-expected report on US consumer confidence. While most companies in the S&P retreated, Tesla and Nvidia propelled a gauge of the 'Magnificent Seven' megacaps up over 1%. Despite this, trading volume remained thin at the start of a holiday-shortened week, approximately 20% below the average of the past month.

Primary Uptrends Remain Intact, according to Craig Johnson at Piper Sandler. He noted, "Given the short-term oversold conditions, we expect a Santa Claus rally to be a strong possibility this year." Earlier on Monday, stocks briefly lost momentum after data indicated that US consumer confidence had unexpectedly dropped for the first time in three months due to concerns about the economic outlook.

Neil Dutta at Renaissance Macro Research commented, "The economic outlook is deteriorating."