Wall Street Bounce: Markets Rebound Amid Fed Anticipation
Wall Street indices climbed on Monday as investors sought bargains following a major sell-off, while waiting for new inflation data and the Federal Reserve's impending policy decision. The S&P 500, Nasdaq Composite, and Dow Jones saw significant gains. Key events this week include the CPI report and Fed's rate decision.
Wall Street's three major indices closed higher on Monday with investors snapping up bargains after last week's sell-off, as they awaited upcoming inflation data and the Federal Reserve's policy decision next week.
Investors fled equities previously due to weaker-than-expected jobs data and weak manufacturing figures, leading to the Nasdaq Composite's largest weekly loss since January 2022 and S&P 500's biggest decline since March 2023. This resulted in concerns about the U.S. economy and the Fed's interest rate decision on Sept. 18. However, Monday saw more bullish investor sentiment.
Kristina Hooper, chief global market strategist at Invesco, stated, "Investors had a little time over the weekend to think about things. Clearly, there was an over-reaction to last week's economic data. It raised over-blown fears of a potential recession." Preliminary data showed the S&P 500 gained 1.16%, Nasdaq Composite 1.18%, and Dow Jones Industrial Average 1.19%. Key upcoming events include the CPI report and the first U.S. presidential debate. Market recovery was led by high-quality stocks such as Nvidia and Boeing. Palantir, Dell Technologies, and Erie will join S&P 500, replacing American Airlines, Etsy, and Bio-Rad Laboratories.
(With inputs from agencies.)
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