US STOCKS-US stocks rise as investors weigh economic data, Trump policies

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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

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Indexes up : Dow up 0.91%, S&P 500 up 0.69%, Nasdaq 0.33%

(Updates to mid-afternoon trading)

By Chuck Mikolajczak

NEW YORK, March 17 (Reuters) -

U.S. stocks climbed in choppy trading on Monday, after four straight weeks of declines for the Nasdaq and S&P 500, as investors 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."

The Dow Jones Industrial Average rose 375.48 points, or 0.91%, to 41,864.81, the S&P 500 gained 38.96 points, or 0.69%, to 5,677.90 and the Nasdaq Composite gained 58.65 points, or 0.33%, to 17,812.74.

In addition, U.S. homebuilder sentiment dropped to a seven-month low in March as tariffs on imported materials raised construction costs.

The data came ahead of the Federal Reserve's meeting on Wednesday, in which 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.

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 slightly more than 3% away from a correction after recent gains over the past two sessions.

Nearly all of the 11 major S&P sectors were higher, with consumer discretionary, the worst performer on the year, the sole decliner on the session.

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 nearly 5% 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 about 9% and 26%, respectively, as AI chip firm Nvidia's (NVDA) kicked off its annual conference.

Intel (INTC) rose 7.4% after Reuters reported incoming CEO Lip-Bu Tan has considered significant changes to its chip manufacturing methods and artificial intelligence strategies.

Advancing issues outnumbered decliners for a 4.29-to-1 ratio on the NYSE and a 2.22-to-1 ratio on the Nasdaq.

The S&P 500 posted nine new 52-week highs and one new low, while the Nasdaq Composite recorded 36 new highs and 103 new lows.

(Reporting by Chuck Mikolajczak)