Index Ticks Higher Ahead of This Week’s Fed Decision

Major U.S. equities indexes moved higher Monday, even as a report showing a lower-than-expected increase in retail sales in February intensified concerns about the economy’s trajectory.

Monday’s uptick marked the start of a new trading week that will include a Federal Reserve policy meeting. Central bankers are widely expected to maintain their benchmark rate at current levels as they await more clarity on the economic impact of shifting U.S. trade policies.

The S&P 500 advanced 0.6% on Monday. The Dow industrials climbed 0.9%, while the tech-heavy Nasdaq ended 0.3% higher.

Shares of solar equipment manufacturer Enphase Energy (ENPH) notched the top daily performance in the S&P 500, surging 9.8%. With the push higher on Monday, the stock recovered from a string of losses over the past week, in line with the slump in the broader market. Last week, Enphase launched shipments of the newest electric vehicle (EV) chargers in European markets.

Intel (INTC) shares added 6.8%, extending gains posted late last week after the chipmaker named former board member Lip-Bu Tan as its new top executive. The semiconductor giant received an additional vote of confidence from a regulatory filing showing that the incoming CEO would purchase $25 million worth of Intel shares within 30 days of taking the reins of the company.

Shares of electricity generator AES Corp. (AES) jumped 6.1%. Alongside other utilities, AES has drawn attention from investors for its opportunity to provide power for energy-intensive data centers, and according to reports, big tech firms account for more than 40% of the company’s backlog. Last week, AES announced the pricing for its offering of $800 million in senior notes due in 2032. The company plans to use the proceeds from the offering to repurchase notes due in 2025.

Incyte (INCY) shares dropped 8.6%, losing the most of any S&P 500 stock after the pharmaceutical company released results from a Phase 3 clinical trial for an experimental skin care treatment. Although Incyte’s povorcitinib reached its goal of reducing symptoms for the skin condition hidradenitis suppurativa (HS), the improvement for patients occurred at a lower rate than previous trials for the drug.

Shares of Discover Financial (DFS) sank 6.9% following reports that U.S. Department of Justice (DOJ) officials have concerns about the credit card issuer’s planned merger with Capital One Financial (COF). DOJ staff members reportedly believe the combination could limit competition in the subprime market. The potential regulatory resistance follows reports emerging last month that several states could file a lawsuit to block the deal. Capital One shares fell 3.8%.

Tesla (TSLA) shares declined 4.8% after Mizuho analysts cut their price target on the stock and reduced their forecast for the carmaker’s vehicle deliveries. Mizuho’s team pointed to weakening demand, headwinds in China, and issues with brand perception as factors behind the more muted outlook.