Wall St advances on soft landing optimism; focus on crucial inflation data
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Boeing jumps after reaching tentative labor deal
Eli Lilly up after appointing insider Montarce as CFO
Dell, Palantir rise as stocks to be added to S&P 500
Indexes up: Dow 0.47%, S&P 500 0.85%, Nasdaq 1.11%
Updated at 9:35 a.m. ET/1335 GMT
By Shubham Batra and Shashwat Chauhan
Sept 9 (Reuters) -Wall Street's benchmark indexes rose on Monday, rebounding from a week of heavy losses as investors remained optimistic about a soft landing scenario for the U.S. economy ahead of a crucial inflation report later in the week.
Most megacap and growth stocks rose after falling sharply last week, withTesla TSLA.O and Nvidia NVDA.O adding more than 3% each.
Major chipstocks, which also saw heavy selling last week, regained some ground with the Philadelphia Semiconductor Index .SOX up 1.8% after tumbling more than 4% on Friday.
Ten of the 11 major S&P 500 sectors were trading higher, with consumer discretionary .SPLRCD and information technology .SPLRCT rising more than 1% each.
Global markets were rattled last week as uncertainty over the U.S. economy's health rippled across assets, adding fuel to an already volatile period that has investors grappling with a shift in the Federal Reserve's policy and worries over stretched valuations.
Friday'sweaker-than-expected August jobs data spurred worrieson economic growth, drivingthe Nasdaq Composite .IXIC to its worst week since January 2022, while the S&P 500 .SPX saw its biggest weekly drop since March 2023.
Markets will be squarely focused on U.S. consumer prices data on Wednesday that is expected to show a moderation in headline inflation in August to 2.6% on a yearly basis, while on a monthly basis it is expected to remain unchanged at 0.2%.
Ronald Temple, chief market strategist at Lazard said that while the inflation battle is not fully won, "it appears safe to say that the Fed should feel comfortable that inflation is sufficiently under control to begin moving monetary policy in a less restrictive direction."
The report will be followed by producer prices data on Thursday.
Money markets currently see a 73% chance of a 25-basis-point rate reduction by the Fed next week and expect a total monetary easing of 100 bps by the end of the year, according to CME's FedWatch Tool.
Debate between Democrat Kamala Harris and Republican Donald Trump on Tuesday - the first time ahead of the presidential election on Nov. 5 - will be closely eyed by the investors.
At 09:35 a.m. ET, the Dow Jones Industrial Average .DJI rose 199.46 points, or 0.47%, to 40,535.85, the S&P 500 .SPX gained 46.00 points, or 0.85%, to 5,454.42 and the Nasdaq Composite .IXIC gained 185.94 points, or 1.11%, to 16,876.78.
Among individual movers, Boeing BA.N advanced 3.3% after the planemaker and its biggest unionreached a tentative deal covering more than 32,000 workers, averting a possible strike.
Eli Lilly LLY.N climbed more than 1% after the drugmaker appointed insider Lucas Montarce as its chief financial officer.
Dell Technologies DELL.N and Palantir PLTR.N rose 5.2% and 9.9% respectively, while Erie ERIE.O climbed 3.1% as they are set to join the S&P 500 index on Sept. 23.
These companies will replace American Airlines Group AAL.O, Etsy ETSY.O and Bio-Rad Laboratories BIO.N, respectively, in the index.
Advancing issues outnumbered decliners by a 1.88-to-1 ratio on the NYSE and by 1.72-to-1 ratio on the Nasdaq.
The S&P 500 posted four new 52-week highs and one new low, while the Nasdaq Composite recorded 12 new highs and 59 new lows.
U.S. economy and markets in run-up to Fed meeting https://tmsnrt.rs/3TmLfc7
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Sherry Jacob-Phillips and Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
