US Stock Market Rebounds Ahead of Federal ⁤Reserve’s​ Interest Rate Decision

The New York‍ Stock Exchange in the United States experienced a significant surge, with the‌ Dow Jones ‍Industrial Average ‌rising by 484.18 points (1.20%) to 40,829.59, the ⁤S&P 500 Index soaring​ 62.63 points (1.16%)⁤ to 5,471.05, and the Nasdaq Composite Index jumping 193.77 points (1.16%) to 10,688.60.

Following a tumultuous week, the stock market rebounded⁤ as investors eagerly awaited the Federal Reserve’s​ next ⁣interest rate policy ahead​ of the inflation report. The Nasdaq posted its biggest⁣ weekly loss since⁣ January 2022 after ⁣weak manufacturing and employment data last week, while⁣ the S&P 500 Index suffered its biggest weekly​ loss since March 2023.

According ⁢to‌ Christina Hooper, Invesco’s chief‌ global market strategist, ⁢”Investors had ‌a bit of​ time to ⁢reflect over the weekend. There was clearly an overreaction to the economic data last week, which created exaggerated fears⁢ of a potential recession.”

This week, ​investors are looking forward to the ⁣first ⁣debate between Democrat ‌Kamala Harris and Republican Donald ​Trump on the 10th, and the ‍Consumer ⁣Price Index (CPI) on the 11th. ‌Phil Blancato, chief market strategist at ‌Oasis Wealth, ‍noted that investors are looking again at “cheaper,⁤ higher-quality stocks,” citing market giant and artificial intelligence chipmaker Nvidia, which rose 3.5% on the day after falling 15.3% last week.

Blancato expects volatility to increase no matter⁣ what the Fed decides. If the Fed cuts rates⁢ by ‍only 25 basis points, some investors will be disappointed, but if it cuts by twice that much, they will worry that the Fed is deeply ‍concerned about ‍the economy,‌ which is a bad ⁢situation, Blancato said.

CPI is expected to show‌ a modest increase of 2.6% for August headline​ inflation, unchanged at ⁣0.2% from the previous month. Producer price data is due to ⁣be released on the 13th, following‌ the CPI report.

Among the S&P 500’s 11 sectors, consumer discretionary led gains, up 1.63%,​ and industrials ⁣rose 1.56%. Boeing‌ rose 3.4% after reaching ​a tentative deal with the‍ union of 32,000 workers.⁤ Palantir‌ rose 14% and Dell Technologies ​rose 3.8%, both ⁤of which will be added⁣ to the S&P ‌500​ on Sept. 23.

Key Market Highlights

• Dow Jones Industrial Average: 40,829.59⁤ (1.20% increase)
• S&P ‍500 Index: 5,471.05 (1.16%‍ increase)
• Nasdaq Composite⁢ Index: 10,688.60 (1.16%‌ increase)
• Nvidia: 3.5% increase
• Boeing: 3.4% increase
• Palantir:‍ 14% increase
• Dell Technologies: 3.8% increase