On Monday, the Nasdaq closed substantially higher as investors awaited this week’s inflation data and Tesla jumped on confidence surrounding artificial intelligence.
After Morgan Stanley raised Tesla from “equal-weight” to “overweight,” claiming that its Dojo supercomputer may increase the company’s market value by over $600 billion, the electric vehicle manufacturer had a rebound.
Other megacaps also increased, with Microsoft and Amazon posting gains.
After a story on Sunday claimed that the social media platform was developing a new, more potent AI system, Meta Platforms saw a rise.
Just hours before the start of NFL “Monday Night Football,” Walt Disney and Charter Communications saw their stock prices rise after reaching an agreement for Disney’s programmes, including ESPN, to return to the Spectrum cable service.
Data on the August consumer price index, which is anticipated on Wednesday, will provide investors with information about how near the Federal Reserve may be to stopping its programme of interest rate hikes. Producer price information will come after that on Thursday.
According to a New York Fed survey, Americans’ perceptions of inflation remained largely unchanged in August as they anticipated higher prices for housing and food while also anticipating worsening personal financial health.
According to Greg Bassuk, chief executive officer of AXS Investments in New York, “What we’re seeing is a lot of positive sentiment that is really tied to bullishness around the likely CPI and PPI numbers being more in line with moderation.”
“We’ll see the Fed refrain from further rate hikes as long as the inflation numbers for August fall within the range of expectations.”
Wall Street recorded weekly losses on Friday as worries about sticky inflation and interest rates remaining higher for longer were stoked by recent increases in oil prices and stronger-than-expected economic statistics.
According to the CME FedWatch Tool, traders believe there is a 93% chance that the central bank will maintain interest rates at their current levels during its September meeting, while the likelihood of a pause in November is 57%.
Up to the outcome of the policy decision on September 20, Fed officials will typically refrain from making public comments. This blackout period has begun.
The S&P 500 increased by 30.24 points, or 0.68%, to close at 4,487.73 points, while the Nasdaq Composite increased by 158.83 points, or 1.15%, to close at 13,920.35. To reach 34,666.48, the Dow Jones Industrial Average increased by 89.89 points, or 0.26%.
After agreeing to a new contract to continue supplying Apple with 5G chips through at least 2026, Qualcomm gained ground. Along with Nvidia, other chipmakers experienced a drop.