The U.S. stock market rebounded on Monday after going through a disastrous week, with benchmark S&P 500, blue-chip Dow Jones Industrial Average, and tech-heavy Nasdaq Composite all recording sizable gains.
In the week prior, the stock recorded its worst week since 2023, with the fall being influenced by the jobs report for August, which left a number of key questions unresolved. The investors believed there was little to read into regarding the level of aggressiveness that the Federal Reserve will have in its interest rate cuts at the upcoming September meeting and engaged in a heavy sell-off.
The stocks in the financial, industrial, and energy sectors were the biggest risers, while the Magnificent Seven stocks also recorded significant jumps. Chipmaker Nvidia’s stock went up by 3.54%, shares of electric vehicle maker Tesla rose by 2.63%, while e-commerce giant Amazon saw its stock record a 2.34% jump.
The S&P 500 closed at 5,471.05 after a 1.16% or 62.63 points gain on Monday. The Dow Jones soared by 1.2% or 484.18 points to close at 40,829.59, while the Nasdaq went up by 1.16% or 193.77 points to close at 16,884.60.
Whether stocks continue their rally will be determined by inflation data, which are expected to be released on Wednesday. Investors hope the report will give them more clues about whether the Fed will cut rates by 25 or 50 basis points.