Wall Street experienced a strong recovery, with all three major stock indexes climbing over 1%.
This data on Monday followed a challenging week marked by significant losses. Investors were eager to find bargains in the market, while awaiting key inflation reports and the Federal Reserve’s upcoming policy decision.
The Dow Jones Industrial Average gained 484.18 points, or 1.2%, closing at 40,829.59 after having been up over 600 points earlier in the day. The S&P 500 also rose 1.2%, and the tech-heavy Nasdaq advanced 193.77 points, or 1.2%, as well.
The recovery comes after a volatile previous week where weak US jobs data, along with concerns over the economy’s health, resulted in sharp sell-offs. The Nasdaq Composite experienced its biggest weekly drop since January 2022, while the S&P 500 posted its worst weekly loss since March 2023.
Investors now have their eyes on the consumer price index (CPI) report, set to be released on Wednesday. This report, alongside producer price data due later in the week, will be closely monitored to gauge inflation trends and their potential impact on Federal Reserve rate decisions.
Phil Blancato, chief market strategist at Osaic Wealth, attributed the market’s gains to overselling from the previous week, highlighting a rise in shares of companies like Nvidia. Despite Nvidia’s 15% drop last week, it surged 3.5% on Monday, leading the market higher.
Market strategists, however, remain cautious ahead of the CPI report. A lower-than-expected inflation figure might signal a rate cut from the Fed, which could range between 25 and 50 basis points. However, any surprises could trigger volatility, particularly if inflation figures deviate from expectations.
Among other notable stocks, Boeing saw a 3.3% increase after reaching a tentative labor deal, while Apple remained flat after the launch of its AI-enhanced iPhone 16. Meanwhile, Palantir and Dell Technologies both surged after news that they would be added to the S&P 500 index later this month.
With input from the Associated Press, New York Post, CNN, and Reuters.
