Stocks ended higher Monday, as investors clawed back losses from an early September selloff on Wall Street while looking to a key inflation reading later in the week.
The Dow Jones Industrial Average climbed 484.18 points, or 1.2%, to close the session at 40,829.59, while the S&P 500 broke a four-day losing streak, gaining 1.16% to end at 5,471.05, after posting its worst week since March 2023.
The tech-heavy Nasdaq surged 1.16% to end the day at 16,884.60, following its worst week in more than 2 years.
Palantir Technologies soared 14.1% to end at $34.60 after news that the data-analytics company, which has been trading publicly only for the past four years, will be added to the S&P 500.
Looking to the week ahead, Bill Adams, chief economist for Comerica Bank, said that lower gas and diesel prices are expected to translate into cool CPI and PPP reports for August.
"Global demand for petroleum products has been solved in 2024 amid tepid growth in Europe and China and US production energy production is at a record high," he said. "Core CPI inflation likely held steady in year over year terms in august and core PPI inflation looks to have picked up."
With inflation slowing in the month, consumer sentiment likely improved as well, Adams noted, as "the University of Michigan Consumer Sentiment Indicator is more sensitive to inflation and cost of living pressures than to labor market conditions."
Updated at 1:07 PM EDT
Apple launch
Apple shares are edging lower heading into the group's iPhone launch event at its global headquarters in Cupertino, with investors looking for some consumer-focused AI features that will stoke a new handset upgrade 'supercycle'.
Apple shares were last marked 0.25% lower in mid-day trading and changing hands at $220.31 each, a move that trims the stock's six-month gain to around 27%.
It's time! Here we go. Apple is kicking off the event with an intro video featuring people dancing while wearing the AirPods. The iPhone makes an appearance, as does the Apple Watch. Apple is focusing on the Accessibility and health features of its devices.
— MacRumorsLive (@macrumorslive) September 9, 2024
Updated at 10:20 AM EDT
Bond reversion
Bond markets are holding on to last week's moves that 'reverted' the yield curve for the first time in more than two years in early Monday trading.
Benchmark 2-year notes were last seen trading at 3.683%, with 10-year notes pegged at 3.731% heading into this week's CPI and PPI inflation reports.
The so-called yield curve, which tracks the difference between returns on short and long term U.S. Treasury bonds, had been 'inverted', with 2-year notes higher than 10-year paper, for a record 783 days up until last Friday.
Related: Bond market sends startling signal for stocks
Updated at 9:35 AM EDT
Solid open
The S&P 500 was marked 46 points, or 0.85% higher in the opening minutes of trading, with the Nasdaq rising 176 points, or 1.06%.
The Dow, meanwhile, was marked 247 points higher, with the Russel 2000 up 5 points, or 0.24%.
S&P 500 Opening Bell Heatmap (Sept. 09, 2024)$SPY +0.84%🟩$QQQ +1.01%🟩$DJI +0.63%🟩$IWM +0.12%🟩 pic.twitter.com/kpbb0KHJa0
— Wall St Engine (@wallstengine) September 9, 2024
Updated at 8:38 AM EDT
Boeing deal
Boeing (BA) shares jumped higher in early trading after the planemaker reached a tentative deal with its biggest union that could avoid a damaging strike later in the year.
The deal, which will face a union ballot on Thursday, would give the 32,000 members members a 25% hike spread over the next four years and commit to making the next phase of its 737 Max in the Seattle area.
Boeing shares were marked 3.6% higher in premarket trading to indicate an opening bell price of $163.27 each.
Boeing and IAM agree on a contract that, if ratified, would avoid a strike later this week. The president of @IAM751 calls it the best contract the union has ever negotiated at @Boeing. $BA https://t.co/ePb03PQZAc
— David Koenig (@airlinewriter) September 8, 2024
Stock Market Today
Stocks closed out their worst week in more than a year Friday following a weaker-than-expected August jobs report, which stoked concern about cooling growth and recession risks heading into the final months of the year.
The selling was compounded by action in the bond market, which lifted 10-year note yields past 2-year yields for the first time in more than two years in a move that could suggest traders are growing increasingly concerned with the U.S. economy's health.
Benchmark 2-year notes were last marked at 3.708%, with 10-year paper trading at 3.761%.
Image Source: Apple
The S&P 500 ended the first week of the month with a 4.25% decline, while the tech-focused Nasdaq fell 5.77% thanks to notable pullbacks in Magnificent 7 stocks such as Nvidia (NVDA) , Tesla (TSLA) and Meta Platforms (META) .
Stocks are looking to a firmer open to start the week, however, with Wednesday's August inflation report in sharp focus now that bets on an outsized Federal Reserve rate hike faded following Friday's jobs report, which showed a jump in monthly and annual wage gains.
The CME Group's FedWatch pegs the odds of a 50-basis-point reduction at just 21% but expects at least a full percentage point of rate cuts between now and year's end.
Heading into the start of the trading day on Wall Street, futures tied to the S&P 500 suggest a 38-point opening-bell gain, while those linked to the Dow Jones Industrial Average are priced for a 232point advance.
The tech-focused Nasdaq is called 158points higher, paced by early gains for Nvidia, Tesla and Apple (AAPL) , which hosts its iPhone launch event later today.
Other stocks on the move include Palantir Technologies (PLTR) , which jumped 7.15% in premarket following Friday's move by S&P Global Indices to include the tech group in the S&P 500 as of Sept. 23.
Related: Palantir stock leaps on big S&P 500 boost for data analytics group
Palantir will replace American Airlines (AAL) , with Dell Technologies (DELL) and Erie Indemnity (ERIE) joining the benchmark and Etsy (ETSY) and Bio-Rad Labs (BIO) exiting.
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- Analyst resets Nvidia stock price target before earnings
In overseas markets, Europe's Stoxx 600 was marked 0.82% higher in early Frankfurt trading ahead of this week's European Central Bank rate decision, slated for Thursday, while Britain's FTSE 100 gained 0.73% in London.
Overnight in Asia, the Nikkei 225 closed 0.48% lower in Tokyo while a muted set of inflation data in China kept a lid on the regional MSCI ex-Japan index, which fell 1.19% into the close of trading.
Related: Veteran fund manager sees world of pain coming for stocks
