A renewed wave of dip buying spurred a rebound in stocks after a selloff triggered by economic concerns, with traders now looking to this week’s inflation data for clues on the size of Federal Reserve rate cuts.
The S&P 500 halted a four-day losing streak as buyers scooped up bargains. The equity gauge bounced back following its worst start to a September since data going back to 1953, according to data compiled by Bespoke Investment Group.
“We’re seeing mostly technical dip-buying,” said Tom Essaye at The Sevens Report. “Economic growth is undoubtedly and clearly losing momentum, but a soft landing remains more likely than a hard landing. This week focus turns back to inflation.”
Traders pared the chance of a half-point rate reduction at the Fed’s upcoming September meeting to about 20% from as high as 50% last week.
The market has been divided for weeks on whether tamed inflation and signs of deterioration in employment figures will prompt the Fed to kick-off its easing campaign with a 25-basis-point cut — the standard move — or something larger. Investors are also unsure of what comes next, and whether the US central bank will aggressively lower rates or adopt a more gradual approach.
The S&P 500 rose 0.8%. The Nasdaq 100 climbed 0.9%. The Dow Jones Industrial Average added 0.6%. While Apple Inc.’s iPhone 16 line will be the focus of its product launch event Monday, its slumping wearable-device business is poised to get a boost as well. The event kicks off from the company’s headquarters in Cupertino, California, at 10 a.m. local time.
Treasury 10-year yields advanced two basis points to 3.73%. The dollar gained.
Corporate Highlights:
Key events this week:
Some of the main moves in markets:
Stocks
Currencies
Cryptocurrencies
Bonds
Commodities
Hi Traders! Bitcoin short term forecast follow up and update is here. On July 23rd,…
Hi Traders! EURCAD technical analysis and short term forecast is here. We do our analysis…
Hi Traders! AUDCAD technical analysis and short-term forecast is here. We do our analysis on…
Stock rotation hits Megacaps as Apple sinks 3%. Wall Street traders gearing up for this…
Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of September…
Wall Street futures edged higher on Thursday ahead of upcoming economic data in the lead…