US benchmark equity indexes closed higher Monday as traders assessed the latest economic data and awaited the Federal Reserve's monetary policy decision due later this week.

The Dow Jones Industrial Average rose 0.9% to 41,841.6, while the S&P 500 increased 0.6% to 5,675.1. The Nasdaq Composite added 0.3% to 17,808.7. Barring consumer discretionary, all sectors closed higher, led by real estate.

In economic news, retail sales in the US rose less than Wall Street's projections amid declines in the motor vehicle and gasoline components, data from the Census Bureau showed.

Consumer spending is expected to be "much softer" this year amid concerns about an intensifying trade war that is adding to worries about inflation, TD Economics said.

US homebuilder confidence unexpectedly dropped in March to the lowest in seven months amid tariff and macroeconomic headwinds, according to data from the National Association of Home Builders and Wells Fargo.

New York manufacturing activity fell into steeper-than-expected contraction territory this month as both orders and shipments turned negative, the New York Fed said.

The S&P 500 will likely finish 2025 lower than previously expected as the US economy slows down, with tariff uncertainty potentially weighing on companies' profits, RBC Capital Markets said in a note.

US Treasury yields were mixed Monday, with the two-year rate rising 3.3 basis points to 4.05% and the 10-year rate dropping one basis point to 4.30%. The central bank's Federal Open Market Committee is widely expected to again hold its benchmark lending rate steady Wednesday, following a pause in January, according to the CME FedWatch tool. Policymakers are also scheduled to outline their latest economic projections Wednesday, including the future trajectory of interest rates.

"Maintaining a solid assessment of economic conditions and hiring, as well as the still-elevated level of inflation, the Fed is likely to show little adjustment in expectations for additional policy cuts, at least in the near term, as the committee continues to assess the incoming data and 'uncertainty' surrounding tariffs and the Trump administration's fiscal policy agenda," Stifel said in a Monday note.

In company news, Intel's incoming chief executive, Lip-Bu Tan, is considering significant changes to the company's chip manufacturing and artificial intelligence strategies as part of turnaround efforts, Reuters reported, citing unnamed sources. The chipmaker's shares jumped 6.8%, among the top gainers on the S&P 500.

Walmart is making Klarna the exclusive provider of its buy now, pay later loans, a win for the Swedish fintech over its rival Affirm, CNBC reported, citing unnamed sources. Walmart's shares rose 2.5%, the second-best performer on the Dow, while Affirm fell 4.2%.

Tesla was among the steepest decliners on the S&P 500, down 4.8%. The electric vehicle maker is offering a free trial of its Full Self-Driving service in China, Reuters reported, citing the company's Chinese website.

West Texas Intermediate crude oil advanced 0.5% to $67.51 a barrel Monday. Prices gained after the US "vowed to keep attacking Yemen's Houthis until the group ends its assaults on shipping," D.A. Davidson said.

Gold rose 0.3% to $3,009.60 per troy ounce, while silver was flat at $34.42 per ounce.

Portfolio News

Active Trading Portfolio: No trades for last few days. We continue to monitor the situation. Check Out the Active Trading Portfolio.
Option Trading Portfolio: We continue to eye the EUR/USD and contemplating selling the 1.12 April Calls on the EUR/USD June futures! The Fx pair has made another push above 1.09. We will wait for the Federal Reserve meeting to pass this week before investing.
Our current financed bear put spread on SPY is looking good with the recent rebound in the S&P 500.

We like option trades on SPY to capitalise on this volatility. We are waiting on a spike in the VIX before participating ..we are still not sure that this selloff is done just yet.

Check Out the Option Trading portfolio.
Buy and Hold Portfolio: Our long-term buy-and-hold portfolio is thriving. We'll promptly notify our Pro and Premium members via WhatsApp when we initiate new purchases. We have over 14 stocks ready to go when this selloff is complete. Check out out the Buy and Hold Portfolio.
The Vix: The VIX, often called the fear index, has been trending upwards, but we believe it has room to climb. We view a sharp VIX surge as a valuable contrarian indicator, often signaling a prime opportunity to buy into equities. We haven't yet seen the level of VIX volatility we're looking for, but we'll promptly inform our members upon its arrival. Until then, we recommend maintaining a patient approach.