Wall Street concluded on an optimistic note on Monday. The upward trajectory was majorly influenced by substantial gains in 3M and Goldman Sachs, coupled with anticipation about vital inflation and job statistics scheduled to be unveiled this week. These metrics will serve as pivotal indicators, assisting in deciphering the Federal Reserve’s future interest rate trajectory.
Key Stock Index Highlights:
- The S&P 500 marked a 0.63% incline, ending at 4,433.31 points.
- The Nasdaq witnessed a 0.84% rise, landing at 13,705.13 points.
- Dow Jones Industrial Average soared 0.62%, reaching 34,559.98 points.
Major Movers on the Index:
- Nvidia surged 1.78%, registering as the most actively traded stock on the S&P 500 with $31 billion worth of shares being traded.
- Apple and Alphabet recorded gains too, each appreciating by 0.9%.
- 3M’s stock price leaped by 5.2% following reports of the company’s tentative settlement amounting to over $5.5 billion to address claims of defective combat earplugs sold to the U.S. military.
- Goldman Sachs recorded a 1.8% gain, driven by its recent deal with wealth management company Creative Planning LLC.
Federal Reserve Chair, Jerome Powell, reiterated in his comments last Friday that there might be a requirement to elevate interest rates to control inflation. Ross Mayfield, from Baird, highlighted, “The remarks by Powell neither projected an overly hawkish stance nor unnerved the markets.”
Anticipated Economic Indicators
This week is pivotal as the focus turns towards the personal consumption expenditures price index – the Fed’s preferred measure of inflation – scheduled to be unveiled on Thursday, followed by the non-farm payrolls data set for Friday. While the week began to light in terms of major announcements, the Dallas Fed’s monthly manufacturing report disclosed a pullback in the manufacturing domain within Texas. Additionally, some speculations suggest that the Fed might adjust rates before 2021 ends.
US-China Trade Relations
In international trade, U.S. Commerce Secretary Gina Raimondo engaged in dialogues with Chinese counterparts on Monday, emphasizing the importance of a stable economic rapport between the world’s economic giants. This initiative aims to address constraints on American enterprises, including prominent names such as Intel and Micron.
Futures and Projections
European and U.S. futures registered an uptick, further boosting optimism in the global markets. Specific data highlighted:
- September S&P 500 futures were up by 0.18%.
- September Nasdaq 100 E-Mini futures rose by 0.26%.
- U.S. 10-year bond yields stood at 4.233%, dropping by 0.23%.
- European Euro Stoxx 50 futures jumped by 0.73% following gains from the previous week and bullish trends in Asia.
Other Noteworthy Market Movements
- Hostess Brands Inc. saw a surge of over 21% post rumors of the company considering a sale.
- Affirm Holdings Inc. reported an over 28% surge after projecting promising Q4 outcomes.
- Marvell Technology Inc. recorded a 6% drop post its Q2 revelations.
- Chinese stocks listed in the U.S., such as JD.com, Baidu, and Alibaba, all saw a rally of over 2% after China announced a reduction in stamp duty to rejuvenate its market.
The upcoming week is anticipated to be data-rich, with the U.S. Nonfarm Payrolls report stealing the spotlight. Other statistics to watch include the U.S. Core PCE Price Index, CB Consumer Confidence, JOLTs Job Openings, and a plethora of additional economic indicators. Investors and market analysts are poised to interpret these numbers, with all eyes fixed on potential implications for interest rates and inflation trends.