Stocks Rebound, but Tesla Faces Setback Amid Trade Concerns

U.S. stocks continued their recovery on Monday, boosted by strong retail sales data that suggests the economy remains resilient. The S&P 500 rose 0.6% to close at 5,675, while the Dow Jones Industrial Average gained 0.8%. The Nasdaq Composite also advanced, though at a slower pace, adding 0.3%.

Despite the rally, investors remain cautious about the potential economic impact of the Trump administration’s tariffs on major trading partners, including China, Canada, and the European Union.

Among individual stocks, PepsiCo climbed 2% after announcing its $2 billion acquisition of Poppi, a prebiotic soda brand. Intel shares surged 8% following the appointment of semiconductor veteran Lip-Bu Tan as CEO.

Tesla, however, struggled. The EV maker’s stock fell nearly 5% after warning that White House trade policies could negatively affect U.S. automakers. The company urged officials to consider how proposed measures might disrupt the industry.

Interestingly, Tesla’s decline came on the same day President Trump expressed public support for Elon Musk, stating on social media that he would buy a Tesla. Despite a 41% drop in 2025, the company’s stock remains 46% higher over the past 12 months, thanks to a post-election surge.