Following last week’s significant sell-off, stocks made a robust recovery on Monday, with major indices posting sharp gains throughout the session.The major averages did retreat slightly from their peak levels in the afternoon but remained strongly positive. The Dow surged 484.18 points, or 1.2%, to close at 40,829.59. Similarly, the Nasdaq climbed 193.77 points, or 1.2%, to finish at 16,884.60, and the S&P 500 increased by 62.63 points, or 1.2%, ending at 5,471.05.This rally was largely driven by traders seeking to purchase stocks at somewhat reduced prices after last week’s steep decline, which had dragged the Nasdaq to its lowest level in nearly a month. Additionally, optimism that the Federal Reserve might lower interest rates later this month bolstered the market, despite ongoing concerns about the U.S. economic outlook.Market participants are also anticipating key reports on consumer and producer price inflation expected later this week. These reports are forecasted to show a deceleration in the annual rate of consumer price growth but an acceleration in producer price growth.While it is widely expected that the Fed will begin reducing interest rates later this month, the forthcoming data could influence expectations regarding the rate and pace of these cuts. According to CME Group’s FedWatch Tool, there is currently a 73% probability of a 25-basis-point rate cut and a 29% chance of a 50-basis-point reduction.### Sector PerformanceAirline stocks performed notably well, with the NYSE Arca Airline Index soaring by 2.3%, marking its highest closing level in over a month. JetBlue (JBLU) led the sector, surging 7.2% after Bank of America upgraded its rating on the airline’s stock to Neutral from Underperform.The semiconductor sector also saw significant gains, as evidenced by a 2.2% increase in the Philadelphia Semiconductor Index, which rebounded after closing at a one-month low last Friday. Networking, banking, and computer hardware stocks similarly exhibited strength, reflecting broad-based gains across most sectors.### Global MarketsIn international markets, Asia-Pacific stock markets mostly trended lower on Friday. Japan’s Nikkei 225 Index dropped by 0.5%, while China’s Shanghai Composite Index declined by 1.1%.Conversely, European markets moved higher on Monday. The U.K.’s FTSE 100 Index rose by 1.1%, the French CAC 40 Index increased by 1.0%, and Germany’s DAX Index advanced by 0.8%.### Bond MarketTreasuries edged slightly higher over the session after initial weakness. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, dipped by 1.3 basis points to settle at 3.697%.### Upcoming EventsTuesday’s trading might be relatively subdued in the absence of major U.S. economic data, as traders await the closely watched inflation reports.This refined version retains the core information while presenting it in a more polished and professional manner.The material has been provided by InstaForex Company – www.instaforex.com
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