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Cardinal Health ( CAH ) falls on losing contracts with OptumRx

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Tesla down after price cuts in several markets

(Updates to 16:00 PM ET)

By Chibuike Oguh

NEW YORK, April 22 (Reuters) - Wall Street stocks ended

higher on Monday following a market sell-off in previous

sessions as investors eyed a busy week for quarterly results

from key companies that would provide a glimpse of the U.S.

economy's health.

The benchmark S&P 500 and the Nasdaq

rebounded from a decline over the past six sessions which had

been caused by investors re-evaluating their expectations on

interest rate cuts in the wake of strong economic data,

geopolitical tensions, persistent inflation and commentary from

Federal Reserve officials.

All 11 S&P 500 sectors closed higher, with technology

and financial stocks leading gains.

Markets were gearing up for quarterly results from megacap

companies this week, including some of the so-called Magnificent

Seven stocks such as Tesla, Meta Platforms ( META ),

Alphabet and Microsoft ( MSFT ).

"I think it's just standard buy-on-the-dip after a 5%

pullback that kind of wakes people up to put money to work,"

said Lamar Villere, portfolio manager at Villere & Co in New

Orleans.

"Investors are looking ahead to this week with hugely

significant earnings coming out and with concerns about what the

Fed is doing with pushing back any rate cuts," Villere added.

Money markets are pricing in only about 41 basis points

(bps) of rate cuts this year, down from about 150 bps seen at

the beginning of the year, according to LSEG data.

In addition to top corporate earnings, markets are also

awaiting the release later this week of the March personal

consumption expenditure (PCE) data - the Fed's preferred

inflation gauge - to further ascertain the monetary policy

trajectory.

Fed policymakers are in a media blackout period ahead of

their policy meeting on May 1.

According to preliminary data, the S&P 500

gained 44.25 points, or 0.89%, to end at 5,011.48 points,

while the Nasdaq Composite gained 169.30 points, or

1.11%, to 15,451.31. The Dow Jones Industrial Average

rose 261.11 points, or 0.69%, to 38,247.51.

Megacap growth stocks ended higher, with gains in Alphabet,

Amazon.com ( AMZN ) and Apple ( AAPL ). Nvidia ( NVDA )

rebounded from a 10% drop in the previous session.

"This is predicated on positive technical expectations on

tech earnings and traders not wanting to be short in front of

it, and the PCE numbers later this week that people are somewhat

sanguine about as well," said Thomas Hayes, chairman of hedge

fund Great Hill Capital in New York.

Tesla shares dropped as the electric vehicle maker cut

prices in a number of its major markets, including China and

Germany, following price reductions in the United States.

Cardinal Health ( CAH ) fell sharply after the drug

distributor said its contracts with UnitedHealth Group's ( UNH )

OptumRx, one of its largest customers, will not be renewed when

they expire at the end of June.