NEW YORK: Wall Street stocks won solid gains on Monday (Feb 13) in an optimistic round of trading, ahead of key inflation data that will influence US monetary policy.
The S&P 500 climbed 1.15% to end the session at 4,137.32 points.
The Nasdaq gained 1.48% to 11,891.79 points, while the Dow Jones Industrial Average rose 1.11% to 34,246.13 points.
“Today is just a natural reaction in the opposite direction after we’ve seen very heavy selling pressure,” said Keith Buchanan, portfolio manager at Globalt Investments in Atlanta.
Market watchers awaiting Tuesday’s consumer price index report have penciled in further moderation, which would ease pressure on the Federal Reserve (Fed) to prolong interest rate increases for significantly longer.
The yield on the 10-year US Treasury dipped in a sign traders expect the Fed’s rate-hiking streak to end relatively soon.
“It looks as if the market is expecting a little bit of good news on inflation,” said Peter Cardillo of Spartan Capital Securities.
Despite Monday’s gains, some analysts expressed caution ahead of Tuesday’s data.
Stocks were buffeted much of last week by worries that the Fed will enact many more interest rate hikes.
“Pricing pressures are expected to rise last month and we should not be surprised if the Valentine’s day inflation report is very hot as used car prices and energy costs clearly rebounded last month,” said Oanda’s Edward Moya.
“Risky assets could struggle if the bond market sees more traders place bets for much more Fed tightening,“ he added.
Meta jumped about 3% after the Financial Times reported on Sunday that the company was preparing to announce a new round of job cuts, adding to layoffs last November.
Microsoft rose more than 3%, Nvidia gained 2.5%, and Apple and Amazon each rose over 1%. Along with Meta, those tech-related heavyweights contributed more than any other stocks to the S&P 500's gains during a trading session that saw light volume.
Other economic releases this week include a report on retail sales on Wednesday and housing starts on Thursday, both for January. – AFP, Reuters
Source: The Sun Daily
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