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Tesla jumps after media report that Trump could ease rules

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CVS Health ( CVS ) gains on new board appointments in Glenview

deal

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Indexes: Dow down 0.26%, S&P 500 up 0.3%, Nasdaq up 0.5%

(Updates as of 2 p.m. EST)

By Abigail Summerville and Lisa Pauline Mattackal

Nov 18 (Reuters) - The Nasdaq and S&P 500 rebounded on

Monday, recovering some losses as investors anticipate quarterly

earnings from AI leader Nvidia ( NVDA ), and Tesla

jumped on the prospect of favorable policy changes from the

incoming Trump administration.

Nvidia ( NVDA ) reports third-quarter earnings on Wednesday when

investors will assess demand for chips and the sustainability of

the AI euphoria that drove much of the market's rally this year.

The chip designer, which powered 20% of the S&P 500's return

over the past year, is expected to drive nearly 25% of its EPS

growth in the third quarter, according to BofA Global Research.

Nvidia's ( NVDA ) shares were down 1.5% after a report said its new AI

chips were overheating in servers.

"While Nvidia ( NVDA ) is the last of the Magnificent Seven to

report, you've seen a nice broadening in earnings and

attention," said Carol Schleif, chief investment officer at BMO

Family Office. "It'll be noteworthy, but it doesn't feel like

there's the same level of impetus around it as there was a

quarter or two ago."

Energy stocks led the S&P, popping 1.02%, with

consumer discretionary also rising as Tesla jumped

4.9% following a Bloomberg report that members of

President-elect Donald Trump's transition team were seeking to

ease U.S. rules for self-driving cars.

CVS Health's ( CVS ) shares gained 5.8% after the health

insurer said it would add four new members to its board in an

agreement with Glenview Capital Management. Yet healthcare

stocks slipped 0.17%.

"I think a lot of specific sectors could be pretty volatile

until we get more verbiage out of Trump's new picks later this

month," Schleif said.

Stock indexes have shed some of the sharp gains that

followed Trump's decisive victory, but Wall Street remains

fairly well-placed as 2024 winds down.

Rising expectations that the Federal Reserve will slow the

pace of policy easing and uncertainty over the impact of Trump's

cabinet appointments led to the S&P 500 and the Nasdaq

logging their worst weekly losses in more than two

months last week.

As of 2 p.m. EST, the Dow Jones Industrial Average

fell 110.90 points, or 0.26%, to 43,334.09, the S&P 500

gained 17.65 points, or 0.30%, to 5,888.19 and the Nasdaq

Composite gained 94.14 points, or 0.50%, to 18,774.09.

With the key holiday shopping season set to commence,

results from major retailers including Walmart ( WMT ), Lowe's

Companies and Target ( TGT ) will be closely watched

this week to gauge the strength of the U.S. consumer.

Advancing issues outnumbered decliners by a 1.83-to-1 ratio

on the NYSE, and by a 1.03-to-1 ratio on the Nasdaq.

The S&P 500 posted 26 new 52-week highs and 13 new lows

while the Nasdaq Composite recorded 58 new highs and 231 new

lows.