U.S. Stocks Surge Ahead of Key Economic Data, Dollar Strengthens
U.S. stocks closed higher on Monday, breaking a four-session losing streak. The dollar also strengthened as investors awaited consumer price index data and central bank actions. Major indexes like the S&P 500, Dow, and Nasdaq each rose by over 1%, driven by optimism about potential Fed rate cuts.
U.S. stocks closed sharply higher on Monday, with the dollar also showing strength as markets braced for crucial economic data and central bank decisions. All three major U.S. stock indexes saw gains surpassing 1%, ending their losing streak and making a strong comeback from significant weekly losses not seen since March 2022.
The tech-heavy Nasdaq, which experienced its worst Friday-to-Friday decline since January 2022, also rebounded. The greenback's ascent came in anticipation of Wednesday's pivotal Consumer Price Index (CPI) report.
Greg Bassuk, CEO of AXS Investments, highlighted two key factors contributing to the market's performance: renewed investor activity following last week's over-selling, and optimism surrounding a potential Federal Reserve rate cut. According to CME's FedWatch tool, there is currently a 71% chance of a 25 basis point reduction in the Fed's key policy rate next week.
(With inputs from agencies.)
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