Stocks surged higher on Monday, reclaiming ground lost during last week’s sell-off. Although the major indices initially pulled back after an early rise, they have since reversed direction and continued to climb.As of now, the major indices are just below their session highs. The Dow has risen by 573.49 points or 1.4% to 40,918.90, the Nasdaq has gained 196.63 points or 1.2% to 16,887.46, and the S&P 500 has increased by 67.60 points or 1.3% to 5,476.02.The rally is driven by traders capitalizing on lower stock prices following last week’s sharp decline, which saw the Nasdaq plummet to its lowest level in nearly a month. Additionally, optimism about the Federal Reserve potentially lowering interest rates later this month is bolstering the market, despite ongoing concerns about the U.S. economic outlook.Investors are also anticipating key reports on consumer and producer price inflation due later this week. These reports are expected to indicate a slowdown in the annual rate of consumer price growth, but an acceleration in the annual rate of producer price growth.While it is widely anticipated that the Federal Reserve will start lowering interest rates later this month, the upcoming data could influence expectations regarding the pace of these rate cuts. Currently, CME Group’s FedWatch Tool indicates a 73% chance the Fed will lower rates by 27 basis points and a 29% chance of a 50 basis point rate cut.### Sector NewsAirline stocks are experiencing substantial gains today, with the NYSE Arca Airline Index soaring by 2.4% to its highest intraday level in over a month. JetBlue (JBLU) is a significant contributor to this advance, spiking by 8.7% after Bank of America upgraded its rating on the airline’s stock to Neutral from Underperform.Banking stocks also show considerable strength, as reflected by the KBW Bank Index’s 2.3% jump. Furthermore, semiconductor, computer hardware, and networking stocks are notably strong, while telecom stocks have moved downward.### Other MarketsOn the international front, stock markets across the Asia-Pacific region mostly declined on Friday. Japan’s Nikkei 225 Index dropped by 0.5%, while China’s Shanghai Composite Index fell by 1.1%.Conversely, major European markets saw gains today. The U.K.’s FTSE 100 Index rose by 1.1%, the French CAC 40 Index increased by 1.0%, and the German DAX Index advanced by 0.8%.In the bond market, treasuries have edged modestly higher after initial weakness. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has dropped by 1.5 basis points to 3.695%.The material has been provided by InstaForex Company – www.instaforex.com
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