U.S. stocks jumped on Monday after investors bought the dip following Wall Street’s worst week of the year, betting that a likely Federal Reserve rate cut later this month would bolster a slowing economy. Technology shares, among the hardest hit stocks last week, were Monday’s top performers.
The Dow Jones Industrial index leaped 484.18 points, or 1.2%, to end Monday at 40,829.59.
The S&P 500 index regained 62.64 points, or 1.2%, to 5,471.06. It was the benchmark’s first gain in five days.
The NASDAQ climbed 193.77 points, or 1.2%, to 16,884.60, paced by a 3% jump in Nvidia. The AI darling lost 14% last week.
Outside of tech, retailers, banks and industrial shares also mounted a comeback as investors believe a rate cut would give a boost to the
flagging consumer. JPMorgan Chase, Costco, Amazon and Boeing were among the winners on Monday. Palantir and Dell Technologies popped 13.5% and 4.8%, respectively, after S&P Dow Jones Indices said late Friday the stocks will join the S&P 500.
This week, investors will watch out for two key inflation reports that could further inform the Federal Reserve’s decision at its next open market committee meeting. August’s consumer price will see the light of day Wednesday, and the producer price report is slated for release on Thursday morning.
Prices for the 10-year Treasury gained some ground, lowering yields to 3.71% from Friday’s 3.72%. Treasury prices and yields move in opposite directions.
Oil prices took on 89 cents to $68.56 U.S. a barrel.
Gold prices picked up $9.40 to $2,5340.
