A woman carries a red umbrella while walking along Wall Street near the New York Stock Exchange (NYSE) in New York.

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Stocks fell on Monday, surrendering a portion of their historic rallies in the prior week. The Dow’s losses were concentrated in names like Visa and Caterpillar, which slid after an analyst downgraded the stock. S&P 500 losses were led by real estate investment trusts and financials. Energy, which had previously traded in positive territory, outperformed the broader market after OPEC and its allies agreed to cut crude production by a record 9.7 million barrels per day.

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1:18 pm: JPMorgan’s market guru sees ‘full asset price recovery’ by first half 2021

Stocks can reclaim their record highs by early next year thanks to the Federal Reserve’s unprecedented commitment to help the economy recover from the coronavirus crisis, according to Marko Kolanovic, JPMorgan’s global head of macro quantitative and derivatives strategy. “We believe that the Fed’s action last Thursday represents a pivotal moment in this crisis,” Kolanovic said. “This reinforces our view of a full asset price recovery, and equity markets reaching all-time highs next year, likely by H1. We believe the significance of this development is underestimated by markets.” The Fed announced a slew of new programs Thursday aimed at lending out as much as $2.3 trillion to businesses and governments. – Li

12:36 pm: Stay at home stocks rise

Shares of Netflix and Amazon rose on Monday as stay at home stocks joined energy names as the winners to start the week. The streaming video company rose about 6% while Amazon gained 4.7%. Netflix hit a new 52-week high during the session for the first time since March 3. The tech-heavy Nasdaq Composite was holding up the best of the major indexes on Monday, down about 0.5% around midday. — Pound, Francolla

12:32 pm: Markets at midday: Stocks give back some of last week’s massive rally

Around midday, the major averages fell broadly as Wall Street took a breather following the market’s massive rally last week. The Dow was down about 400 points, or more than 1.5%. The S&P 500 was down 1.4% while the Nasdaq slid 0.4%. Caterpillar was the worst-performing stock in the Dow, falling more than 8%. — Imbert

12:10 pm: Market comeback pauses but analysts see value in stocks like FedEx, Palo Alto Networks & more

  • Bank of America upgraded FedEx to buy from neutral.
  • Credit Suisse upgraded Dunkin’ Brands to outperform from underperform.
  • Rosenblatt upgraded Palo Alto Networks to buy from neutral.
  • Morgan Stanley upgraded Charter to overweight from equal weight.
  • Evercore ISI upgraded Allstate to outperform from in line.
  • Morgan Stanley downgraded Liberty Formula One to equal weight from overweight.
  • Susquehanna upgraded D.R. Horton to positive from neutral.
  • Bank of America downgraded Caterpillar to underperform from neutral.
  • Goldman Sachs downgraded Micron to neutral from buy.
  • Baird downgraded Deere to neutral from outperform.
  • Leerink initiated Teladoc as outperform. — Bloom

11:53 am: Cuomo says New York has hit ‘a plateau’ as deaths drop slightly

New York saw a day-over-day decline in coronavirus deaths and hospital statistics show that the state appears to be hitting a “plateau,” Gov. Andrew Cuomo said. There were 671 deaths on Sunday after several consecutive days of more than 700 deaths. The state now has more than 10,000 deaths due to the virus. — Pound

11:34 am: Oil rises after historic OPEC+ deal, but retreats from session high

Oil prices rose on Monday one day after OPEC and its allies, known as OPEC+, reached a deal to curb output by 9.7 million barrels per day beginning on May 1. The deal – the largest output cut in history – is an attempt to prop up prices as the coronavirus pandemic continues to sap demand for crude. U.S. West Texas Intermediate crude rose 2% to trade at $23.24, after earlier trading as much as 8% higher. International benchmark Brent crude rose 1.6% to $31.98. – Stevens

11:07 am: SCWorx stock more than triples in value after big virus tests order

SCWorx shares rocketed more than 225% on Monday after the company said a health-care network has agreed to purchase some 48 million COVID-19 rapid testing kits over the next several weeks. The tests, purchased by Rethink My Healthcare, analyze blood for the presence of COVID-19 antibodies. “Widespread testing for COVID-19 disease in the United States is absolutely critical for saving lives and reopening our economy,” Marc Schessel, CEO of SCWorx, said in a press release. “Our substantial purchase order from Rethink My Healthcare will significantly increase the availability of rapid-test kits in the United States.” — Franck

10:39 am: Stock sell-off accelerates with Dow down 500, S&P 500 loses 2%

The sell-off that began at the opening of trading on Monday accelerated about one hour into the session with the Dow down more than 500 points and the S&P 500 down 2%. Real estate investment trusts and financials continued to drag on the major indexes with J.P. Morgan down 2.75% and American Express shaving 36 points off the Dow with a slide of 5.5%. Energy, supported by the aforementioned production deal between OPEC and its allies, remained the only sector trading positive. Gold traded down 0.6% and West Texas futures rose 2.55%. — Franck

10:10 am: Ford shares dip on revenue warning

Shares Ford fell more than 4% on Monday after the automaker warned that the economic fallout from the coronavirus has significantly impacted its first-quarter performance. Ford said total revenue for the first quarter is expected to be about $34 billion, down from $40.3 billion a year ago. The automaker added that it couldn’t yet provide an accurate estimate of its earnings, telling investors it expects a pre-tax loss of at least $600 million, excluding $300 million in special items. The automaker’s stock is down about 45% this year.— Fitzgerald 

9:51 am: eBay rises after new CEO is named

Walmart executive Jamie Iannone has been chosen as the new CEO of eBay, the e-commerce company announced Monday. Iannone is currently the chief operating officer of Walmart’s e-commerce division. Iannone, who previously worked at eBay from 2001 to 2009, will officially take over on April 27. Shares of eBay rose 2.4% in early trading. The stock is down about 6% for the year. — Pound

9:40 am: Dow drops 300 points to start trade, REITs and financials lead S&P lower

Stocks fell to start Monday’s session as slides in real estate investment trusts and financials pushed the S&P 500 down 1.1%. Dow industrials fell 300 points within the first 15 minutes of trading as declines in Caterpillar and Home Depot offset gains in Walmart, Boeing and Apple. The declines to start the week follow strong gains for the major indexes in the prior week, when the Dow posted its seventh-best weekly performance and rallied 12.7%; the S&P 500 had its biggest one-week gain since 1974 last week and jumped 12.1%. — Franck

9:25 am: Morgan Stanley sees S&P 500 rallying 8%

Morgan Stanley lifted its year-end S&P 500 target following the Federal Reserve’s unprecedented measures to prop up the coronavirus-ravaged economy. The firm’s base case is for the S&P 500 to end the year at 3,000, which is roughly 8% higher than where the benchmark currently trades. “This salvo from the Fed far surpassed expectations in terms of size and scope,” Morgan Stanley’s equity strategist Mike Wilson wrote in a note to clients Monday, referring to the Fed’s announced $2.3 trillion in loan support. “Investors should not have any doubts about the Fed’s resolve to do whatever it takes to make sure this recession doesn’t turn into a depression,” he added. Wilson’s bear case target for the S&P 500 is 2,500, while his bull case sees the index hitting 3,250. — Stevens

9:01 am: Goldman says market is unlikely to make new lows because government is doing ‘whatever it takes’

Goldman Sachs acknowledged that its call for a deeper sell-off is “no longer likely” as it underestimated the unprecedented policy actions to offset the coronavirus impact. The bank said the stock market has likely bottomed and the firm is pricing in a “sharp” economic recovery. Goldman previously predicted the S&P 500 would trough at 2,000 mid-year. “If the US does not experience a second surge in infections after the economy reopens, the ‘do whatever it takes’ stance of policymakers means the equity market is unlikely to make new lows,” David Kostin, Goldman’s chief U.S. equity strategist, said in a note on Monday. – Li

8:57 am: Airlines set to rebound on hopes coronavirus is improving

Shares of American, Delta and United Airlines all jumped about 4% in premarket trading on Monday on optimism that the coronavirus is stabilizing. Dr. Anthony Fauci said on Sunday he was cautiously optimistic that the outbreak was slowing down in the U.S. and parts of the country may start to reopen next month. Two weeks ago, Congress approved $50 billion in loans and grants for U.S. passenger airlines in the coronavirus relief legislation. Still, shares of American, Delta and United Airlines are down more than 50% this year. – Li

8:47 am: Don’t ‘chase the tape,’ strategist says

Investors should be wary of buying into the market after the recent rally because of unknowns about the economy, Citi strategist Tobias Levkovic said in a note to clients. Levkovic wrote that a rise in cash positions during March likely helped fuel the recent rally, but that an expected string of bad economic data and earnings could now pull stocks back down.

“We are thrilled by the data flattening on hospitalizations and the pickup in recoveries, but there is significant commercial and industrial sector plus employment damage to repair as well,” Levkovic said. — Pound, Bloom

8:46 am: FedEx jumps on upgrade

Shares of shipping company FedEx rose nearly 2% in premarket trading on Monday following an upgrade to buy from neutral at Bank of America. The firm said Amazon dropping its partnership shows how difficult the third-party shipping process can be. “We believe the recent decision by Amazon to pause its Shipping with Amazon (SWA) third-party delivery business highlights the difficultly to efficiently enter the business,” research analyst Ken Hoexter said. The firm also raised its price target to $140 from $117 per share. Bank of America noted that FedEx maintains ample liquidity, as the company raised $3.0 billion in cash to preserve flexibility. — Fitzgerald

8:35 am: Energy stocks jump following historic OPEC+ deal

Energy stocks moved higher in Monday’s premarket trading after OPEC and its oil-producing allies agreed to cut production by a record 9.7 million barrels per day. Traders are hoping that the cut will help tackle the supply glut in the market as the coronavirus pandemic continues to hammer demand. The Energy Select Sector SPDR Fund (XLE), which tracks the sector, gained 2.5%. Occidental Petroleum, Marathon Petroleum, Devon Energy and Diamondback Energy all jumped more than 5%. Exxon and Chevron, the U.S.’ largest oil companies, rose 3% and 2.2%, respectively. – Stevens

8:12 am: Caterpillar shares slide after BofA downgrade

An analyst at BofA Securities downgraded Caterpillar to underperform from neutral, citing the construction giant’s exposure to the energy sector. “CAT derives only 10% of revenue directly from oil and gas, but its Construction and Mining products touch the energy sector in many places too,” analyst Ross Gilardi said in a note to clients. Caterpillar’s stock dropped more than 2% in the permarket after Gilardi’s downgrade. — Imbert, Bloom

8:08 am: Global coronavirus cases near 2 million, but deaths decline in Spain

There are now more than 1.8 million confirmed cases of Covid-19 around the world, including  more than 557,590 in the United States. However, Spain — one of Europe’s hardest hit countries — reported improving numbers. The country reported 517 deaths in one day, down from 619 previously. Spain has lifted some of its lockdown measures, sending construction and factory workers back to work. — Pound 

7:39 am: Stocks set to open lower

U.S. stock index futures pointed to losses at the open as markets struggled to hold onto last week’s gains. The Dow Jones Industrial Average was set to open 133 points lower for a loss of 0.56%, while the S&P 500 and Nasdaq-100 were slated to drop 0.6% and 0.4%, respectively. Earlier in the session stock futures had been positive following a historic agreement between OPEC and its oil-producing allies to take 9.7 million barrels per day off the market. Oil was trading flat.

The S&P 500 is coming off its best week since 1974 as investors cheered an apparent improvement in the U.S.’ coronavirus outlook along with massive stimulus measures from the Federal Reserve. Small cap stocks outperformed the broader market last week with the Russell 2000 rising 18.5% for its best week ever. But the S&P 500 is still 18% below its February all-time high, however, while the Dow is roughly 20% below its peak. – Stevens

– CNBC’s Maggie Fitzgerald, Yun Li, Thomas Franck and Michael Bloom contributed reporting.

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