Wall Street’s main indexes gain more than 1% in week of inflation in the US – Stock Market

After having recorded the worst week since March 2023, the main indexes on Wall Street closed this Monday trading in positive territory, with the three main indexes rising more than 1%.

Investors are today taking optimism out of prospects for a soft landing of monetary policy in the economy, ahead of August inflation figures in the United States on Wednesday.

At the same time, they were also looking for shares that, due to the strong devaluation last week, are now cheaper, in a movement known as “buy the dip”.

The S&P 500 added 1.16% to 5,471.05 points. The Nasdaq Composite also gained 1.16% to 16,884.60 points. The Dow Jones industrial average advanced 1.2% to 40,829.59 points.

Among the main market movements, Apple ended practically unchanged, after having revealed its new iPhone 16, the first built to support artificial intelligence features.

Palantir, Dell and Erie rose after it was announced last Friday that they will join the S&P 500 starting September 23.

“Investors had a bit of time over the weekend to think. Clearly there was an overreaction to last week’s economic data. That led to exaggerated fears of a potential recession,” Kristina Hooper, chief strategist at Invesco, told Reuters. “A pause gives us an opportunity to be more rational.”

Last week’s sharp sell-off came after the release of U.S. job creation data for August, which showed that new jobs were created at 142,000 – about 20,000 jobs below analysts’ expectations. Meanwhile, the unemployment rate eased slightly to 4.2%.

Investors will be paying attention this week to inflation and producer price figures for August as they try to anticipate the size of an interest rate cut by the Federal Reserve in September, whether by 25 or 50 basis points.

The odds of a 25 basis point cut are 71%, while a larger cut is 29%, according to the FedWatch tool, cited by CNBC.

Also taking center stage will be the debate between the two main presidential candidates in the United States, Donald Trump and Kamala Harris, which takes place on Tuesday.