As banks and Apple lend support, the S&P 500 and Dow soar.

After a steep selloff last week, the S&P 500 and Dow gained on Monday, powered by advances in banks and Apple, but the tech-heavy Nasdaq was pushed down by a decline in Tesla (NASDAQ:TSLA) and chipmakers.

In early trading, eight of the 11 main S&P sectors climbed, with financials and energy both up more than 1%.

Bank stocks rose 2.9 percent, driven by a 3.5 percent increase in JPMorgan Chase & Co (NYSE:JPM) after the country's largest lender raised its net interest income forecast for 2022.

Apple Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT) climbed 1.6 percent and 1.5 percent, respectively, to give the S&P 500 the greatest boost.

Last week, poor estimates from Walmart (NYSE:WMT) Inc and other retailers added to concerns about rising inflation and its effect on consumers and economic growth in the United States.

At one point on Friday, the benchmark S&P 500 had fallen more than 20% from its Jan. 3 record closing high, putting it on the verge of confirming a bear market. From its all-time closing high, the index is presently down 17.9%.

"It doesn't surprise me, and that's what you'll start to see when you're rebounding along the bottom; it's an indicator that stocks are getting more appealing," said Christopher Grisanti, MAI Capital Management's chief equity strategist.

"People are less concerned about inflation the more they believe there will be a recession. If the economy slows, the Federal Reserve will not need to hike interest rates as quickly as it did before."

The second estimate of first-quarter GDP, the PCE price index, and durable goods data for April are all expected this week, and will likely reveal how the world's biggest economy is faring in the face of decades-high inflation.

The minutes of the Federal Reserve's May meeting, which are expected on Wednesday, will be scrutinized for clues as to how quickly the US central bank intends to hike interest rates. The Fed is expected to raise rates by 50 basis points in June and July, according to money markets.

The Dow Jones Industrial Average was up 271.16 points, or 0.87 percent, at 31,533.06 at 10:04 a.m. ET, while the S&P 500 was up 13.44 points, or 0.34 percent, at 3,914.80.

Tesla Inc, Nvidia (NASDAQ:NVDA) Corp, and Amazon.com all fell 37.56 points, or 0.33 percent, to 11,317.06 on the Nasdaq Composite (NASDAQ:AMZN).

VMWare Inc, a cloud service provider, jumped 16.9% after news broke over the weekend that chipmaker Broadcom (NASDAQ:AVGO) Inc was in discussions to buy the business. Broadcom's stock dropped 4.9 percent.

Didi Global's shares on the New York Stock Exchange rose 3.5 percent after a majority of the Chinese ride-hailing giant's shareholders voted in support of the company's intention to delist.

On the New York Stock Exchange, advancers outpaced decliners by a 1.46-to-1 ratio. On the Nasdaq, declining stocks outnumbered advancing shares by a 1.00-to-1 ratio.

The S&P 500 index added one new 52-week high and 31 new lows, while the Nasdaq added 15 highs and 63 lows.