US stocks rally as recession fears ease and investors look to upcoming Big Tech earnings

• US stocks finished higher on Monday as fears of a US recession eased on Wall Street.
• The odds of a recession in the next 12 months have fallen to 20% from 25%, Goldman Sachs said.

US stocks finished higher on Monday as Wall Street grew less worried that the US economy will slip into a recession soon.

Goldman Sachs said the odds of a recession in the next 12 months have fallen to 20% from 25% earlier. Meanwhile, Bank of America pointed out that bond yield spreads fell to new 2023 lows, indicating that recession fears are melting away.

And Treasury Secretary Janet Yellen told Bloomberg TV that while China's slowdown could reverberate across the global economy, she doesn't expect a US recession.

Meanwhile, investors are looking ahead to the start of second-quarter earnings reports from tech giants. After the close on Wednesday, Tesla and Netflix are due to release results.

Here's where US indexes stood at the 4 p.m. ET closing bell on Monday:

• S&P 500: 4,522.79, up 0.4%
• Dow Jones Industrial Average: 34,585.35, up 0.2% (76 points)
• Nasdaq Composite: 14,244.95, up 0.9%

Here's what else has happened today:

• Billionaire investor Seth Klarman warned the "everything bubble" might still burst and more banking disasters may be coming.
• Sen. Elizabeth Warren asked the SEC to investigate Tesla over possible conflicts of interest in Twitter ties.
• US home prices are nearing new record highs as inventory drops to all-time lows.

In commodities, bonds and crypto:

• West Texas Intermediate crude fell 1.7% to $74.12 per barrel. Brent crude, oil's international benchmark, dropped 1.8% to $78.47.
• Gold slid 0.3% to $1,959.10 per ounce.
• The yield on the 10-year Treasury dipped 2 basis points to 3.797%.
• Bitcoin slipped 1.1% to $29,956.