Stocks rose Monday as market participants grew more confident that inflation may have peaked ahead of highly anticipated inflation data this week. The Dow Jones Industrial Average rose over 200 points, while the S&P 500 and Nasdaq Composite both added about 1%.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Monday's moves extended a rebound for Wall Street, with all three major averages snapping a three-week losing streak on Friday.
Stocks have been volatile ahead of the Federal Reserve's September 20-12 meeting. Currently, investors are looking for more clues on the central bank's next policy decision from Tuesday's Consumer Price Index (CPI) report for August, which is due before market open.
Economists surveyed by Bloomberg expect the month's CPI to rise by 8.1% year-over-year, moderating from July's annual increase of 8.5%. From July to August, economists expect CPI to ease by 0.1% in response to falling energy prices. Core CPI, which excludes more volatile energy and food prices and is one of the Fed's preferred inflation gauges, is forecasted to rise by 6.1% annually in August, a jump from July's reading of 5.9%.
Tuesday's CPI reading is the last major economic report before the Fed's September policy-setting meeting. Multiple Wall Street institutions, including Goldman Sachs
Recently, multiple Fed officials have signalled that they plan to remain aggressive towards inflation, with Fed Chair Jerome Powell signaling last week that interest rates will remain high to fight inflation.
"Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance," Powell said in remarks last month. "I can assure you that my colleagues and I are firmly committed to this project, and we will keep at it until the job is done."
Sentiment was also boosted on Monday by recent developments including military success by Ukraine against Russian forces and a weaker U.S. Dollar
In the news on Monday, Twitter
Elsewhere, Google
Looking ahead, investors will respond to Tuesday's CPI report. Starbucks