*

Intel ( INTC ) up after report new CEO plots overhaul of

manufacturing,

AI operations

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February retail sales rise 0.2%

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New York factory activity tumbles in March

(Updates to market close)

By Chuck Mikolajczak

NEW YORK, March 17 (Reuters) -

U.S. stocks rallied for a second straight session on Monday,

as investors sought bargains after the Nasdaq and S&P 500 fell

for four straight weeks and assessed the latest economic data to

gauge the impact of the Trump administration's policies.

Retail sales rebounded marginally in February, but fell

short of expectations, reflecting the increasing uncertainty

over tariffs and large-scale firing of federal government

employees. A separate report showed factory activity in New York

State plummeted this month by the most in nearly two years.

"The only signs of a bounceback in spending from January's

weather-induced slump, and stocking up ahead of tariffs, was in

online spending," said Brian Jacobsen, chief economist at Annex

Wealth Management in Menomonee Falls, Wisconsin.

"Sentiment is often a horrible predictor of spending,

but the good vibes that have propped up spending are now a

distant memory."

According to preliminary data, the S&P 500

gained 36.38 points, or 0.64%, to end at 5,675.32 points,

while the Nasdaq Composite gained 55.26 points, or

0.31%, to 17,809.35. The Dow Jones Industrial Average

rose 356.18 points, or 0.86%, to 41,844.37.

In addition, U.S. homebuilder sentiment dropped to a

seven-month low in March as tariffs on imported materials raised

construction costs.

When the Federal Reserve meets on Wednesday, it is

widely expected to keep rates unchanged, according to CME's

FedWatch Tool

.

Fed officials will also announce

economic projections

with their policy statement, giving the most tangible

evidence yet of how U.S. central bankers view the likely impact

of Trump administration policies that have clouded a previously

solid economic outlook.

The Federal Reserve Bank of Atlanta

adjusted

its forecast for first-quarter economic activity to show a

2.1% contraction, down from the March 7 estimate of a 1.6%

contraction.

Stocks have tumbled in recent weeks, with the S&P 500

dropping last week by more than 10% from its February record

high, commonly known as a correction. The market rebounded on

Friday as investors shopped for shares that may fare better

under Trump's policies.

The blue-chip Dow index stood roughly 3.5% away from a

correction after recent gains over the past two sessions, while

the Nasdaq confirmed it was in correction territory on March 6.

Of the 11 major S&P sectors, real estate and

energy led gains.

Over the weekend, Treasury Secretary Scott Bessent

warned in an interview that there are "no guarantees" the United

States will escape a recession.

Tesla stumbled after brokerage Mizuho lowered its

price target on the EV maker's stock to $430 from $515, which is

down more than 40% on the year.

Quantum computing stocks such as D-Wave Quantum ( QBTS ) and

Quantum Corp ( QMCO ) jumped as AI chip firm Nvidia's ( NVDA )

kicked off its annual conference.

Intel ( INTC ) surged after Reuters reported incoming CEO

Lip-Bu Tan has considered significant changes to its chip

manufacturing methods and artificial intelligence strategies.