S&P 500 Forecast: Energy and Industrials Gain While Tesla and Affirm Slide

S&P 500 Gains as Market Attempts Recovery from Correction

The S&P 500 edged higher Monday as investors assessed retail sales data and looked for signs of stability following a steep market correction. The index added 0.2%, while the Dow Jones Industrial Average climbed 269 points, or 0.6%, supported by gains in Walmart and IBM. The Nasdaq Composite lagged, slipping 0.2% as technology stocks struggled.

Markets reacted to February retail sales figures, which showed a 0.2% increase, below the expected 0.6% gain. However, excluding autos, sales rose 0.3%, matching forecasts. Despite missing estimates, the data eased concerns over a deeper pullback in consumer spending.

Are Stocks Rebounding After the Recent Selloff?

The S&P 500 officially entered correction territory last week, falling more than 10% from its recent highs before rallying 2% on Friday. Analysts, including CFRA Research’s Sam Stovall, believe the market could find a floor near 5,400, implying a modest downside from Friday’s close. Despite the bounce, the Nasdaq remains in correction mode, down 12% from its peak.

Investor uncertainty continues as markets react to evolving tariff policies and concerns over corporate cost-cutting. Comments from officials indicate a willingness to accept near-term economic pain to push through structural changes, adding to market volatility.

Which Sectors and Stocks Are Moving?

The energy sector led gains, climbing 1.8%, followed by consumer staples and industrials, which rose 1.4% and 1.3%, respectively. Technology was a notable laggard, slipping 0.2%.

Among individual stocks, Affirm tumbled 10% after Walmart chose Klarna as its exclusive buy-now-pay-later provider. Tesla dropped 6% following a price target cut from Mizuho, which cited concerns over slowing EV demand. Incyte fell 9% as trial results for its skin treatment drug underwhelmed.

On the upside, Intel surged 8% after reports suggested incoming CEO Lip-Bu Tan plans significant shifts in chip manufacturing and AI strategy. Netflix gained nearly 4% on an analyst upgrade, citing stronger monetization potential. Norwegian Cruise Line rose 4% after JPMorgan upgraded the stock, noting resilient consumer demand despite macro concerns.

What’s Next for the Market?

Traders are eyeing upcoming economic data, including inflation and labor market reports, to gauge the Federal Reserve’s next move. Analysts warn that while corrections are normal, further downside is possible before a sustainable recovery takes hold. Fed policy expectations, corporate earnings, and geopolitical risks will continue to shape market sentiment in the weeks ahead.

More Information in our Economic Calendar.