The Dow Jones index is gaining 100 points as the week begins as investors weigh the next Fed rate move

Stocks rose on Monday as investors pondered a possible slowdown in interest rate hikes from the Federal Reserve and prepared for an earnings-packed week.

The Dow Jones Industrial Average rose 120 points, or 0.4%, after rising more than 400 points earlier in the session. The S&P 500 added 0.8%. The Nasdaq Composite Index rose 1.5%.

Semiconductor stocks Tesla and Apple shares gained Hoping that reopening in China would boost their business. Both big tech names have recently grappled with temporary shutdowns and production strikes as the country dealt with a surge in Covid-19 cases.

Investors are beginning to ponder the possibility that the Federal Reserve is preparing to slow the pace of interest rate hikes to combat inflation after months of aggressive tightening. Economic data released last week showed a Low wholesale and retail prices. That, and comments from central bank officials, seem to indicate a slowdown.

Comments from Federal Reserve Governor Christopher Waller on Friday appearing to favor a quarter-percentage-point hike in interest rates at the next meeting raised investors’ hopes of a downward turn. a Wall Street Journal report Sunday raised the possibility of a pause in the spring to raise interest rates – a sign that the Fed may be nearing the end of its rate hike campaign.

“The bulls are running with near-term momentum, the ‘soft landing’ story, and it’s hard to argue with the recent price action,” Jonathan Krinsky, chief market technician at BTIG, wrote in a note on Monday. “On the other hand, the long-term trends are still somewhat bearish, and we are always suspicious of such a widely watched ‘breakout’, especially after a big run.”

markets It is priced at Almost 100% chance of a 25 basis point raise, according to CME Group datawhich brings the interest rate to the target range of 4.5% -4.75%.

Earnings reports It can keep the market on edge This week, with about 40% of the Dow due to release their latest financial results and provide more insights into how companies are facing inflation and interest rates. Some of the big names on deck include Microsoft, IBM, Tesla, Visa, and Mastercard.