Following a robust early-session rise, stocks corrected coursed and retracted some gains throughout Monday’s trading. Despite this pullback from their session highs, the major indices remain in positive territory.Currently, the Dow Jones Industrial Average has risen by 377.46 points, or 0.9%, to 40,722.87. The Nasdaq has increased by 93.54 points, or 0.6%, to 16,784.37, and the S&P 500 has advanced by 38.41 points, or 0.7%, to 5,446.83.The early surge on Wall Street was driven by traders seizing the opportunity to buy stocks at somewhat reduced levels following last week’s sharp decline, which took the Nasdaq to its lowest point in nearly a month.In addition, optimism that the Federal Reserve will lower interest rates later this month bolstered initial market strength, despite ongoing concerns about the U.S. economic outlook.However, buying interest has diminished as traders await this week’s critical reports on consumer and producer price inflation.These reports are anticipated to reveal a slowdown in the annual consumer price growth rate but an acceleration in the annual producer price growth rate.While the Federal Reserve is widely expected to initiate interest rate cuts later this month, the data could influence expectations regarding the pace of such cuts.CME Group’s FedWatch Tool currently indicates a 71% probability of a 25 basis point rate cut and a 29% chance of a 50 basis point reduction.Sector NewsAirline stocks have made significant gains, with the NYSE Arca Airline Index surging by 2.6% to its highest intraday level in over a month.JetBlue (JBLU) has been a key driver, jumping 7.8% after Bank of America upgraded its rating on the airline’s stock to Neutral from Underperform.Banking stocks have also demonstrated considerable strength, as evidenced by the 1.8% rise of the KBW Bank Index.Other sectors showing notable strength include networking, brokerage, and computer hardware, while telecom stocks have declined.Other MarketsInternationally, Asia-Pacific stock markets predominantly declined during Friday’s trading, with Japan’s Nikkei 225 Index falling by 0.5% and China’s Shanghai Composite Index dropping by 1.1%.In contrast, major European markets have shown gains. The French CAC 40 Index is up by 1.2%, the U.K.’s FTSE 100 Index has risen by 1.1%, and Germany’s DAX Index has increased by 0.9%.In the bond market, treasuries recovered to near unchanged levels after initial weakness. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, is up by less than a basis point at 3.715%.The material has been provided by InstaForex Company – www.instaforex.com
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