Stocks experienced a widespread increase on Wall Street on Monday as the market’s focus shifted from the Federal Reserve to corporate and economic reports.
This rise extended the market’s winning streak following its initial weekly gain since July. The S&P 500 climbed 0.6% or 27.60 points to reach 4,433.31, although the benchmark index is still set to conclude August with a loss.
Important economic reports set to be released
The Dow Jones Industrial Average rose by 0.6%, equivalent to 213.08 points, reaching 34,559.98, while the Nasdaq composite surged 0.8% or 114.48 points to 13,705.13.
Companies are concluding their most recent round of earnings reports, with most surpassing analysts’ predictions. However, overall profits for the S&P 500 have contracted by roughly 4% due to the ongoing impact of persistent inflation.
In upcoming days, a series of economic reports will provide insights into the job market’s strength and inflation trends, influencing the Federal Reserve’s potential interest rate decisions.
Economic data, including the report on consumer confidence and job openings in July, will contribute to this understanding.
The government’s inflation update is anticipated, with the report on personal consumption and expenditures, the Fed’s preferred gauge, expected to show a slight increase in July, aligning with the central bank’s efforts to moderate inflation back to 2%.
Market participants expect the Federal Reserve to maintain interest rates during its September meeting, as indicated by CME’s FedWatch tool.
However, the market remains divided on whether the central bank will implement another rate hike before the close of 2023.
The market’s optimism is also reflected in global exchanges. Markets in Asia reported broad gains, with China taking a significant step toward reopening by eliminating the requirement for a negative COVID-19 test for incoming travelers. European markets also exhibited positive performance.