Stocks rose Monday as traders regained their footing after the S&P 500 and NASDAQ Composite suffered their worst weekly declines in nearly two months.
The Dow Jones Industrials leaped 201.34 points to open the week at 34,070.61.
The S&P 500 grew 22.8 points to 4,113.26.
The NASDAQ Composite recovered 78.39 points to 11,796.51.
Microsoft and Salesforce led the Dow's gains, “Mr. Softee” rising 3.6% and Salesforce ahead 1.8%. Tech was the best-performing S&P 500 sector, popping more than 1%.
All three major indexes are coming off a losing week. The Dow last week slipped 0.17%. Meanwhile, the S&P 500 fell 1.11%, and the tech-heavy NASDAQ slid 2.41%, marking their biggest weekly losses since December.
The moves came after Federal Reserve Chairman Jerome Powell said that there is still a long way to go in the fight against inflation. Powell also noted that interest rates could rise more than markets anticipate if inflation numbers do not abate, reversing some of the prior market optimism that rate hikes would soon ease.
Investors will get more inflation data this week. On Tuesday, January's consumer price index report will be released, showing if price increases have continued to slow amid the central bank's rate hikes.
The final leg of earnings season also continues this week, with Coca-Cola, Marriott, Cisco, Marathon and Paramount. So far, companies have reported worse-than expected results, making this year the worst earnings season in more than two decades, excluding recessions, according to Credit Suisse.
Prices for the 10-year Treasury faltered, raising yields to 3.71% from Friday's 3.75%. Treasury prices and yields move in opposite directions.
Oil prices erased 35 cents to $79.37 U.S. a barrel.
Gold prices plummeted $7.80 to $1,866.70 U.S. an ounce.