Stocks rose Monday to kick off the final trading week of August, with Wall Street looking to regain ground amid a month of losses.

The Dow Jones Industrial Average gained 213.08 points, or 0.62%, to close at 34,559.98. The S&P 500 climbed 0.63% to 4,433.31, and the Nasdaq Composite advanced 0.84% to finish the session at 13,705.13. All three indexes have lost ground in August, with the S&P 500 shedding 3.4%. The Nasdaq and Dow have slipped about 4.5% and 2.8%, respectively.

Meta and Apple traded slightly higher, while Nvidia added 1.8%. Shares of electric vehicle giant Tesla inched up 0.1%.

Those moves come as tech tries to regain its footing late in August. The information technology sector of the S&P 500 is down 4.6% for the month.

Outside of tech, shares of 3M popped more than 5% a day after a Bloomberg News report, citing sources familiar, said that the company was ready to settle lawsuits alleging some earplugs were faulty.

Monday's rally was broad: Ten of the 11 sectors in the S&P 500 were positive. Utilities ticked lower by 0.04%.

"Today is much more of a cyclical lift versus tech, and I think that's just from stronger-than-expected growth outside of the U.S.," said Dylan Kremer, co-chief investment officer at Certuity. "The rally [in] tech this year has been driven by artificial intelligence but also the quality factors within tech companies. Where we are now, the growth slowdown may be pushed out, and you may see investors start to favor cyclicals over tech in the short-term."

Stocks are coming off a winning session following fresh remarks from Federal Reserve Chair Jerome Powell. On Friday, Powell pointed to some signs of continued economic growth and strong consumer spending, but indicated that the central bank would "proceed carefully" with additional hikes.

As of Monday morning, traders were pricing a more than 20% chance that the Fed will raise rates again at its upcoming September meeting, according to CME Group's FedWatch tool. Investors are also eyeing the Fed's preferred inflation gauge, the personal consumption expenditures index, due out on Thursday, followed by fresh non-farm payroll data Friday morning.

Stocks close higher

Stocks closed higher on Monday, as traders on Wall Street try to regain ground from August losses.

The Dow Jones Industrial Average added 213 points, or 0.6% to close at 34,559.98. The S&P 500 added 0.6% to finish the session at 4,433.31, while the Nasdaq Composite gained 0.8% to 13,705.13.

— Brian Evans

Morgan Stanley isn't banking on a healthy consumer

Morgan Stanley remains cautious in the consumer space right now, analysts said in note Monday.

"The consumer is less healthy than it appears," analyst Simeon Gutman wrote. While nominal personal consumption expenditures growth looks healthy on the surface, spending on services is outpacing goods, excluding autos, he said.

"We stay cautiously positioned," he added, preferring defensive names including Walmart and Costco.

— Michelle Fox

Deutsche Bank says more volatility could be ahead in retail sector

Deutsche Bank reiterated Walmart, Ulta and Costco as top picks in retail amid what has been a volatile earnings season for the sector.

Analyst Krisztina Katai said the last two weeks have been chaotic in the sector, but investors should still expect more ahead.

In addition to her top picks, Katai said she's also recommend buying Dollar Tree after its recent slide. On the other hand, Katai said she would avoid companies in the "crosshairs" with Walmart like Target.

"2Q retail earnings season has been a tough one and we anticipate further volatility in the weeks ahead," she said in a note to clients.

— Alex Harring

Salesforce its set to report earnings on Wednesday. Here's what analysts are expecting:

Shares of Salesforce are up 0.9% on Monday, just a couple of days before the company is set to report its earnings Wednesday after market close.

Analysts surveyed by FactSet are calling for earnings per share of $1.90 and revenue of $8.53 billion. Meanwhile, the company's guidance suggests its revenue will range between $8.51 million and $8.53 billion, and that its earnings per share will come out between $1.89 and $1.90.

Here's what analysts have to say:

• Deutsche Bank analyst Brad Zelnick kept his $245 target price and reiterated his buy rating on the stock, saying expectations into results are "seemingly modest." That forecast suggests a 16.96% upside from Friday's close.
• Citi analyst Tyler Radke reiterated his neutral rating but lowered his price target by $10 to $220, which implies a 5.03% upside. Radke noted increased concerns around renewals and shelfware, and the company's aggressive sales tactics to attract customer signing deals in the second quarter.
• Jefferies analyst Brent Thill maintained his buy rating on the stock and kept his $250 price target, which implies a 19.35% upside from Friday's close. Thill said the firm is keeping an eye on the company's margins, especially amid ongoing demand headwinds, as well as expected commentary on restructuring and AI.

The cloud-based software company has lost 6.1% this month, but is still up about 59.2% in 2023.

— Pia Singh

Carvana jumps 9% after insider buying

Online used car company Carvana shot up 9% on Monday after a filing showed majority owner Ernest Garcia II recently bought about 2,500,000 shares. His son Ernest Garcia III is the CEO of Carvana.

The stock has skyrocketed nearly 850% this year. Earlier this month, Carvana shared better-than-expected guidance for the third quarter. Carvana has been trading like a volatile meme stock over the past two years.

— Yun Li

All S&P 500 sectors positive for the day

All sectors of the S&P 500 were in the green on Monday, leading the broad market index to tick up 0.6%.

Real estate shares rose 1.2%, making it Monday's largest-gaining sector. Host Hotels & Resorts, Boston Properties and CBRE Group were the top outperformers, rising 2% and more.

The communication services sector came in close second for Monday's gains, rising 0.9%. Warner Bros Discovery jumped 3.4%, while Charter Communications and Paramount Global both added more than 2%.

— Hakyung Kim

High-yield bonds are looking strong, but investors should proceed with caution, Wells Fargo says

Signs of weakness are emerging in the lowest credit quality corners of the high yield market, but the overall junk bond sector itself is showing few signs of stress, according to Brian Rehling, head of global fixed income strategy at Wells Fargo.

He noted that credit spreads tend to increase during economic uncertainty. In general, as spreads widen, bond prices fall, which dents investors' performance.

The current spread level of the Bloomberg U.S. Corporate High Yield Bond Index is 392 basis points, sharply below the average spread level of 528 basis points dating back to 2000. To put things into perspective, spreads have widened out to at least 1,000 basis points in the past two recessions, Rehling writes.

Nevertheless, investors should still be discerning about playing in this space. "We believe investors should consider moving up in credit quality, while avoiding lower-quality issuers, as we expect to enter more challenging economic times," Rehling wrote.

-Darla Mercado

Airline stocks outperforming Monday

Airline stocks are outperforming on Monday as the stock market attempts to start the week off on the right foot.

The U.S. Global Jets ETF was up about 1% in afternoon trading. Shares of United Airlines rose 1.3%, while Delta Airlines added 1.2%.

The ETF is still down more than 10% year to date.

— Jesse Pound

A resurgence in inflation remains a risk as long as economic growth is strong, strategist says

Federal Reserve policy rates have likely peaked, according to Seema Shah, Chief Global Strategist, Principal Asset Management. However, the message to be taken from Fed Chair Jerome Powell's Jackson Hole speech is that the central bank still needs to remain alert to inflation pressures.

"As long as economic growth is strong, a resurgence in inflation is a risk," said Shah.

"As such, the first Fed rate cut will likely only come in late 2Q 2024, once job losses have risen and growth has clearly slowed. By next summer, we will be able to determine if Fed Chair Powell could 'navigate by the stars under cloudy skies.'"

— Hakyung Kim

This data storage company should benefit from A.I. over the long run, Bank of America says

Growing artificial intelligence spending and the adoption of all-flash array storage infrastructure should benefit shares of Pure Storage over the long haul, according to Bank of America.

"All-Flash Arrays are disrupting Hard Disk Drives given better performance, better durability, higher reliability, lower power consumption, and a smaller footprint," said analyst Wamsi Mohan in a Monday note to clients. "The company disrupts traditional selling models by allowing customers to use the same hardware for up to ten years, offering free upgrades every 3 years for a service fee."

The comments come ahead of the data storage company's quarterly results out Wednesday. Mohan noted he's keeping an eye on incremental orders from hyperscalers like Meta Platforms, commentary on the ramp of Pure Storage's FlashBlade E product and remarks on the overall storage spending ecosystem.

Despite the long-term tailwinds, Mohan reiterated the Wall Street firm's neutral rating due to a weakening macroeconomic backdrop.

— Samantha Subin

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading.

• RPT Realty — RPT Realty shares surged 19% after Kimco Realty, an operator of open-air shopping centers, said it would acquire the real estate investment trust in a roughly $2 billion all-stock deal. Kimco CEO Conor Flynn said, "Approximately 70% of RPT's portfolio aligns with our key strategic markets." The deal is set to close in early 2024.
• Mister Car Wash — The car wash stock advanced 7% on the back of an upgrade to overweight from neutral by Piper Sandler. The firm said the company has potential for growth that investors are overlooking.
• CrowdStrike — CrowdStrike fell more than 3% after Morgan Stanley downgraded shares to equal weight from an overweight rating, citing caution and concerns of potentially slowing revenue growth ahead of the software company's upcoming earnings report.

Read the full list here.

— Sarah Min

Wells Fargo upgrades gas and propane distributor UGI after underperformance

UGI Corporation has room to grow despite near-term headwinds, according to Wells Fargo.

Analyst Sarah Akers upgraded the natural gas and propane distributor to overweight from equal weight and lowered her price target. Still, the firm's new target suggests shares could still gain substantially in the next year from where shares closed Friday.

"Given the various (propane and marketing) issues that UGI has faced, we think it's prudent for our positive thesis to be based on a relatively conservative financial outlook," Akers wrote in a note Monday. The stock has tumbled 39% so far in 2023.

CNBC Pro subscribers can read the full story here.

— Pia Singh

Piper Sandler sees upside for Alabama-based bank

Analysts at Piper Sandler are bullish on Regions Financial after a recent meeting with the executive team of the Alabama-based bank.

"While others are more distracted with the ramifications of emerging regulations, RF remains on sturdier footing and should continue to thrive," analyst R. Scott Siefers said in a note to clients Monday.

Piper Sandler has an overweight rating and a $22 per share price target on Regions. The stock rose 1.8% in early trading and was just below $19 per share.

Shares of Regions are down more than 12% year to date.

— Jesse Pound

Morgan Stanley downgrades CrowdStrike

Morgan Stanley is worried about CrowdStrike ahead of the company's latest earnings report this week, downgrading the cybersecurity company to equal weight from overweight on Monday.

"We are cautious [on] CRWD ahead of FQ2 earnings this week as consensus estimates for 2H/CY24 rebound appear high in light of a more difficult demand environment," analyst Hamza Fodderwala said. "Another cut to consensus CY23/24 annual recurring revenue estimates seems likely, while risk-reward seems more balanced now."

CrowdStrike, which is set to report earnings Wednesday after market close, has gained more than 23% in the past six months. The stock lost nearly 2% Monday. 

CNBC Pro subscribers can read the full story here.

— Pia Singh

China ETFs rise on Monday, regaining some ground after difficult month

Monday morning trading offered respite for a handful of beat-down ETFs tracking China.

The KraneShares CSI China Internet ETF (KWEB), iShares China Large-Cap ETF (FXI) and iShares MSCI China ETF (MCHI) all advanced more than 2% on Monday.

Despite the move higher, it's still shaping up to be a difficult August for the group. The KWEB has slid more than 11%, while the FXI and MCHI are both down around 10%.

— Alex Harring, Gina Francolla

UBS upgrades biotech Akero Therapeutics

UBS thinks Akero Therapeutics could be a winner in the race to treat non-alcoholic steatohepatitis, a potentially life-threatening liver disease. 

Analyst Eliana Merle initiated the clinical-stage company with a buy rating. The stock added more than 6% on Monday.

Akero develops treatments for patients with serious metabolic disease, including a therapy called efruxifermin, which received Breakthrough Therapy Designation from the U.S. Food and Drug Administration in December for the treatment of non-alcoholic steatohepatitis, or Nash. 

CNBC Pro subscribers can read the full story here.

— Pia Singh

At this morning's high, Dow Industrial leader 3M added 44 points to the average

At its high in early trading Monday, long-time laggard 3M climbed $6.70 to a session high of $105.65, alone adding more than 44 points to the Dow Jones Industrial Average. (3M was subsequently overtaken by Goldman Sachs as adding the most points to the Dow.)

3M, rocked by medical liability claims and environmental liability suits, was on pace in the early going for its best day of trading since June 2. Month-to-date, 3M remains lower by 7.4%.

The stock yields 5.8%, even with Monday's run. Wolfe Research included 3M on a lengthy list of "Dividend Aristocrats" it published Monday, noting its 68% payout ratio, 1% dividend growth in the past year and 2023 P/E of 12.4%.

Late Sunday, the Wall Street Journal reported that 3M was nearing a $5.5 billion settlement in litigation centered on its liability for the performance of military-grade earplugs.

— Scott Schnipper, Gina Francolla

Chart experts worried about 'double-tops' for key growth funds

Chart experts are warning that some of the funds that have fueled the 2023 market rally could be poised for a move to the downside, including the VanEck Semiconductor ETF (SMH).

"Was this the market calling the top? Sure feels like it. The double top we're seeing across many indices and sectors also has us growing increasingly concerned," Wolfe Research strategist Rob Ginsberg wrote in a note to clients on Saturday.

Check out more chart analysis coverage on CNBC Pro.

— Jesse Pound

Boston Scientific shares jump

Boston Scientific shares jumped 5% on Monday. The medical device maker announced positive results Sunday for its treatment for patients with atrial fibrillation, or abnormal heartbeats. 

— Sarah Min

Stocks open higher

Stocks opened higher on Monday to begin the last trading of August.

The Dow Jones Industrial Average climbed 177 points, or 0.5%. The S&P 500 and Nasdaq Composite gained 0.5% and 0.7%, respectively.

— Brian Evans

Stocks could be signaling more than a seasonality shift, Evercore ISI says

The downward move in stocks following Nvidia's second-quarter earnings beat last weak could be signaling more than a so-called "seasonal setback," according to Evercore ISI senior managing director Julian Emanuel.

"The 'Wall of Worry' that had all but disappeared by July is being rebuilt – U.S. 10 year yields above 4%, anxiety rising in China, Europe's economy slumps, and a more sober tone from some U.S. retailers," Emanuel wrote in a Sunday note. "All are reminders that while Generative AI has prolonged the current Economic Cycle, it hasn't repealed it."

— Brian Evans

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell.

Xpeng — U.S.-traded shares of the Chinese electric vehicles company jumped 5% Monday premarket. Xpeng announced it would buy Didi's smart electric car business in a deal worth $744 million. 

3M — Shares rallied more than 5% after Bloomberg News reported the company tentatively agreed to resolve more than 330,000 lawsuits related to its defective earplugs, The company will pay more than $5.5 billion in the settlement, according to the report.

Mister Car Wash — The car wash stock climbed 5.7% in premarket trading following an upgrade to overweight from neutral by Piper Sandler. The firm said Mister Car Wash has upside potential over the next two years.

The full list can be found here.

— Hakyung Kim

Tech stocks not going up on 'good' news, Goldman desk warns

Traders at Goldman Sachs warned Monday that while the tech sector is coming off a strong week, it's not going up for the right reasons.

"The bad news for the sector right now = stocks not going up on 'good' news .. which raises obvious questions around positioning & valuation," they said in a note. "This has been a key frustration all month long - the latest being NVDA (.. which follows META, UBER, SPOT, AMZN & DASH all down in August despite beat/raise prints), which created a bit of a "if Nvidia can't work, what else can" type of feeling out there."

The S&P 500 tech sector rallied 2.6% last week, and the Nasdaq-100 index gained 2.3% in that time.

"The good news for the sector right now = there also appears to be growing angst in pockets of the market outside of Big Tech (think China exposure or Specialty Retail or Payments), which could create a bit of a 'TINA' dynamic for Big Tech (again)," they said.

— Fred Imbert, Michael Bloom

3M shares jump on report of earplug lawsuits settlement

Shares of 3M popped nearly 6% in the premarket after Bloomberg News reported the company reached a tentative agreement to settle more than 300,000 lawsuits related to combat earplugs sold to the U.S. military. According to the report, 3M would pay more than $5.5 billion to resolve the lawsuits.

— Fred Imbert

Chinese stocks rally after government moves

Chinese equities rallied overnight after the country's government took steps to try to bolster its stock market, including halving a tax on stock trade. The Shanghai Composite popped 1.1% — its biggest one-day gain since July 28, when it advanced 1.8%.

— Fred Imbert

European shares open higher; UBS up 1.7%

European shares rose Monday morning, kicking the final trading week of August off on a positive note.

Traders weighed the prospect of higher interest rates from the Federal Reserve and looked ahead to upcoming U.S. jobs data later in the week.

Germany's DAX 30 rose 98 points, or 0.6%, France's CAC 40 climbed 59 points, or 0.8%, and the Italian FTSE MIB gained 217 points, or 0.8%.

Markets are closed in the U.K. for a public holiday.

Investors remain squarely focused on the direction of monetary policy out of the U.S.

Last week, Fed Chair Jerome Powell said at the Kansas City Fed's annual Jackson Hole symposium that inflation "remains too high," and added the central bank is "prepared to raise rates further if appropriate."

In terms of individual stocks, UBS shares were up 1.7% in Europe.

Credit Suisse, which is now a subsidiary of UBS after a government-facilitated takeover, reportedly posted a 3.5 billion Swiss franc ($4 billion) loss, according to Swiss Sunday newspaper SonntagsZeitung.

— Ryan Browne

Xpeng shares soar after announcing $744 million deal with Didi

Chinese electric car company Xpeng's shares soared by more than 13% in late-morning Hong Kong trade after news of a $744 million deal with ride-hailing giant Didi.

Xpeng will acquire Didi's smart electric car assets via a share exchange, giving Didi the role of strategic shareholder, the two companies announced Monday.

With the new assets, Xpeng plans to launch its first electric car model under a new mass market brand, which currently has a project codename of "MONA."

Read the full story here.

Foxconn founder reportedly announces bid for Taiwan presidency

Billionaire and Foxconn founder Terry Gou said he would join the race to become Taiwan's president, according to media reports.

This is the billionaire's second bid for the presidency. He failed to win the nomination for the opposition Kuomintang party in 2019.

Currently, the presidential front runner is Vice President William Lai from the Democratic Progressive Party, who transited in the U.S. last week en route to Paraguay, one of Taiwan's few remaining allies.

Taiwan will go to the polls in January to select its next president.

— Lim Hui Jie

Evergrande shares plunge as much as 87% as trading resumes after 17 months

Shares of the world's most indebted property developer China Evergrande Group plunged as much as 87% on its open on Monday, trading for the first time since March 21, 2022.

Shares fell to as low as 22 Hong Kong cents on Monday, compared to its last close at 1.65 Hong Kong dollars per share on March 18, 2022.

The resumption of trade comes as the company posted a loss of 39.25 billion yuan ($5.38 billion) for the six months ended June, a smaller loss compared to the 86.17 billion yuan loss the same period a year ago.

Read the full story here.

— Lim Hui Jie

Where the major averages stand

This is where all the major averages stand as the final trading week of August kicks off:

Dow Jones Industrial Average:

• Finished the week about 0.5% lower
• Down 3.4% for the month
• Up 3.6% for the year

S&P 500:

• Finished up 0.8% for the week
• Down 4% for the month
• Up 14.8% for the year

Nasdaq Composite:

• Closed up 2.3% for the week
• Down 5.3% for the month
• Up 29.9% year to date

— Samantha Subin

Stock futures open higher to start the week

Stock futures opened slightly higher to start the final trading week of August.

Futures tied to the Dow Jones Industrial Average rose 57 points, or 0.17%, while S&P 500 futures and Nasdaq-100 futures added 0.2% and 0.25%, respectively.

— Samantha Subin