Dow inches higher as Wall Street tries to rebound from last week’s pullback: Live updates

The major averages ticked higher to start Monday’s session. The Dow advanced roughly 0.1%, while the S&P 500 and Nasdaq also had slight gains.

— Fred Imbert

Although technology shares have pulled back by 1% since the start of the second quarter, UBS remains relatively optimistic on the sector.

To be sure, it reminded investors that the “AI-driven tech rally is not a one-way street.” Geopolitical instability and dampening expectations for the Federal Reserve to cut rates this year has contributed to tech stocks, particularly semiconductor names, to decline recent weeks.

Nonetheless, this comes after “a roughly 70% rally for the MSCI U.S. Information Technology Index since the end of 2022, led primarily by enthusiasm for and application of artificial intelligence,” the firm wrote in a Monday note.

“With the first quarter reporting season fast approaching, this recent underperformance does not alter our positive view around AI-related stocks,” UBS said.

— Hakyung Kim

In his annual letter to shareholders released Monday, JPMorgan Chase CEO Jamie Dimon said artificial intelligence may be as transformational as the printing press, electricity and the internet.

While he touched on a variety of topics, AI was the first in his outline of the issues facing big banks — ahead of geopolitics and regulatory matters.

JPMorgan has more than 2,000 AI and machine learning employees, but it could ultimately touch all of the bank’s employees, Dimon said.

“Over time, we anticipate that our use of AI has the potential to augment virtually every job, as well as impact our workforce composition,” he said. “It may reduce certain job categories or roles, but it may create others as well.”

— Hugh Son, Michelle Fox

Treasury Secretary Janet Yellen said Monday that measures such as tariffs on China’s green energy exports are not out of the question.

“I wouldn’t rule out anything out at this point. We need to keep everything on the table. We want to work with the Chinese to see if we can find a solution,” she said in an interview with CNBC’s Sara Eisen, when asked about the possibility of Washington imposing tariffs if China does not adjust its approach to industry incentives.

“I’m not thinking so much of export restrictions, as some shifts in their macroeconomic policy, and a reduction in the amount of, particularly local government subsidies, to firms,” Yellen said.

Yellen also noted the U.S. planned to “underscore” a needed shift in policy at future discussions.

— Fred Imbert

European markets had a cautious start to the week, with the benchmark Stoxx 600 index 0.06% lower at 8:05 a.m. in London.

France’s CAC 40 and the U.K.’s FTSE 100 were both near the flatline, while Germany’s DAX nudged 0.2% higher.

India’s Sensex and Nifty 50 indexes hit a fresh all-time highs Monday, powered by metal stocks such as Tata Steel and JSW Steel.

The Sensex hit 74,614.71, gaining 0.5% and extending its records from last Friday.

The Nifty rose 0.45% to 22,612.5, also surpassing its previous high hit on April 4.

Tata Steel — the largest component of the Sensex — gained 1.47% and was the second largest gainer on the index, while JSW Steel rose 1.28%.

— Lim Hui Jie

The People’s Bank of China has announced a “re-loan” program of 500 billion yuan ($70 billion) for technological innovation and transformation to support small and medium-sized tech enterprises.

A re-loan program uses funds lent by the PBOC to commercial banks, which then lend them to customers.

In a statement on Sunday, the PBOC said the program will offer loans via 21 banks at a rate of 1.75%, and the loans can be extended twice for up to a year each time.

— Lim Hui Jie

Chinese real estate development firm Shimao has become the latest property company to face a liquidation lawsuit after it received a winding up petition from China Construction Bank (Asia).

This follows lawsuits faced by counterparts Evergrande, which was ordered to wind up, and Country Garden Holdings, which also faces a liquidation petition.

In a filing to the Hong Kong Stock Exchange, the company said the petition was in connection with debt of about 1.58 billion Hong Kong dollars.

Shimao said the petition does not represent the collective interests of its offshore creditors and other stakeholders, adding it will “oppose the petition vigorously.”

Last month, Shimao released a restructuring plan for its offshore debt, saying that the plan represents “a reasonable and realistic solution” for its credit-holders.

— Lim Hui Jie

Bank of America economists believe Wednesday’s inflation report should show a moderation in price pressures, providing confidence to the Fed for a rate cut in June.

The Wall Street firm expects the core consumer price index to moderate to 0.2% in March after rising 0.4% in February and January. It sees declines in car prices that should lead to a drop in core goods. Meanwhile, the bank expects a bigger-than-usual rise in energy prices, however.

“The moderation in core CPI should reflect a drop in core goods prices and a more modest price increase in core services,” the bank’s economists said in a note. “A report in line with our expectations would provide confidence to the Fed and keep a June cut firmly in play.”

— Yun Li

Shares of Tesla jumped 3.8% in after-hours trading Friday after CEO Elon Musk said his electric vehicle company is set to unveil robotaxi later this year.

Musk said in a Friday night post on social media platform X that the unveil will take place on Aug. 8.

Musk has spoken about the robotaxi project for years. Tesla still has yet to deliver a robotaxi, autonomous vehicle or technology that can turn its cars into “level 3” automated vehicles.

— Yun Li