Wall Street stocks rose on Monday, partially recovering from last week’s decline, driven by bargain hunting and optimism following Apple’s major iPhone launch. Investors are also anticipating key inflation data set to be released this week, which could impact future Federal Reserve decisions.
Apple revealed its new iPhones, designed with generative artificial intelligence capabilities, in an attempt to revive growth following sluggish sales. Despite the announcement, Apple shares gained a modest 0.1%. Analysts noted that September historically sees weaker stock performance, and recent losses were exacerbated by concerns over a slowing U.S. economy.
The Dow Jones Industrial Average closed 1.2% higher at 40,829.59, while the S&P 500 rose 1.2% to 5,471.05. The tech-heavy Nasdaq Composite also advanced by 1.2%, finishing at 16,884.60.
Attention is now focused on Wednesday’s consumer price index (CPI) report, a key inflation indicator that could influence the Federal Reserve’s upcoming interest rate decisions. Investors are also eyeing the much-anticipated presidential debate between Vice President Kamala Harris and former President Donald Trump.
Among corporate movers, Boeing saw a 3.4% jump after announcing a preliminary deal with a Seattle-based machinist union, which could avert a strike. Workers are set to vote on the proposal later this week.
On the other hand, Google parent Alphabet saw declines as the company began its second major antitrust trial in less than a year. The U.S. government has accused the tech giant of monopolizing the online advertising market and stifling competition.
Norfolk Southern also saw gains, up 2.7%, after reports from the Wall Street Journal suggested that CEO Alan Shaw would step down amidst an internal investigation into allegations of an improper relationship with an employee.
As markets prepare for the release of the inflation report, investors remain cautious but hopeful for favorable economic data, which could provide more clarity on the Federal Reserve’s next steps regarding interest rates.
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