Stocks Rebound as U.S. Economy Eyes Soft Landing Amid Fed Policy Shifts

Wall Street is set for a positive start, rebounding from heavy losses last week. Key stocks like Tesla, Boeing, and chip companies are leading the gains. Investors are optimistic about a soft landing for the U.S. economy amid upcoming inflation reports and potential Federal Reserve rate cuts.

Wall Street looked poised for a higher open on Monday, recovering from substantial losses in the previous week. Investor confidence grew as hopes for a soft landing in the U.S. economy took hold ahead of a pivotal inflation report scheduled for later this week. Megacap stocks, including Tesla, saw premarket gains with Tesla rising by 2.2%.

Chip stocks, which experienced significant declines last week, also began to recover. AMD and Marvell Technology advanced by 1% and 1.5%, respectively. Global markets had been shaken by uncertainty regarding the U.S. economy, adding to an already volatile period marked by concerns over the Federal Reserve's shifting policy and high asset valuations.

The S&P 500 notched significant gains for the year, standing 13.4% higher amid hopes that the Fed would start cutting rates. All eyes are now on Wednesday's U.S. consumer prices data, which could provide further insight into the inflation trajectory and influence the Fed's upcoming rate decisions.

(With inputs from agencies.)