Wall Street posted gains for the fourth consecutive day ahead of the CPI report

Register now to get free unlimited access to Reuters.com

  • The core CPI declined on Tuesday
  • Bristol-Myers has received FDA approval for its psoriasis drug
  • Twitter says Musk’s latest attempt to cancel the deal is invalid
  • Indexes advance: Dow 0.71%, Standard & Poor’s 1.06%, Nasdaq 1.27%

NEW YORK (Reuters) – Wall Street extended its winning streak on Monday, climbing to a sharply higher closing level as investors await crucial inflation data that could provide clues about the duration and severity of the Federal Reserve’s tightening policy.

energy (.SPNY) and technology (.SPLRCT) Stocks helped the three major US stock indices reach two-week highs and gain in the fourth consecutive session, which saw growth. (.IGX) Stocks are a little favored over value (.IVX).

The Labor Department’s Consumer Price Index (CPI), expected before the opening bell on Tuesday, is the main event of the week, and will be checked for any clues regarding the number and size of future rate hikes from the Fed.

Register now to get free unlimited access to Reuters.com

“The CPI is expected to see a slight decline,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. The market is hoping the news will translate into smaller rate hikes after the September Federal Open Market Committee meeting.

“That’s why today you see a kind of risk-taking in thinking,” Pavlik added.

On Thursday, Federal Reserve Chairman Jerome Powell emphasized that the central bank remains “strongly committed” to tackling decades-old high inflation, and that it “will continue to do so until the job is done.” Read more

Economists polled by Reuters expect the monthly consumer price index to contract 0.1% in August from July, falling to 8.1% on an annual basis, mainly due to the recent slowdown in commodity prices. Read more

Financial markets are currently pricing in a 92% probability that the FOMC will implement a third consecutive rate hike of 75 basis points at the conclusion of next week’s policy meeting, according to CME’s FedWatch Tool.

“The entire market is now priced at 75 basis points for September,” Pavlik said. “The market is hoping that the next 50 basis point and that we will see a little lower rate hike after that, and Wall Street can live with that.”

Dow Jones Industrial Average (.DJI) The Standard & Poor’s Index rose 229.63 points, or 0.71%, to 3,2381.34 points (.SPX) It rose 43.05 points, or 1.06%, to 4110.41 and the Nasdaq Composite Index (nineteenth) It added 154.10 points, or 1.27%, to 12,266.41.

All 11 major sectors of the S&P 500 closed in green. energy companies (.SPNY)Buoyed by higher crude oil prices, it enjoyed the largest percentage gain.

Economically Sensitive Transportation (.DJT) It outperformed the broader market, while the major market leaders provided the most support.

3.9% jump in Apple Inc (AAPL.O) Stocks gave the S&P 500 and Nasdaq their biggest boost, days after the gadget maker revealed updates for the iPhone and Apple Watch. Read more

Pharmaceutical maker Bristol-Myers Squibb (BMY.N) It rose 3.1% after the Food and Drug Administration approved the psoriasis drug late Friday.

Rival Amgen Inc (AMGN.O)maker of the psoriasis drug Otezla, fell 4.1%.

Twitter Inc ended the session down 1.8% amid legal wrangling against Tesla Inc (TSLA.O) Chief Elon Musk to cancel a deal to acquire the social media platform. Read more

Carvana Co . car dealership platform (CVNA.N) It jumped 15.5% higher after Piper Sandler upgraded the stock to “overweight.”

Advance issues outnumbered declining issues on the New York Stock Exchange by 3.37 to 1; On the Nasdaq, the 1.78 to 1 ratio favored heights.

The S&P 500 hit 11 new highs in 52 weeks and there were no new lows. The Nasdaq recorded 47 new highs and 59 new lows.

Volume on US stock exchanges reached 9.63 billion shares, compared to an average of 10.22 billion over the last 20 trading days.

Register now to get free unlimited access to Reuters.com

(Stephen Kolb reports) in New York. Additional reporting by Sinead Caro. Editing by Matthew Lewis and Cynthia Osterman

Our criteria: Thomson Reuters Trust Principles.

Leave a Comment