US stocks mostly rise as markets await inflation data, starting the week with modest gains. Markets are calm. They are watching for inflation reports that could shape Federal Reserve policy.
Early on Monday, U.S. stock index futures moved higher. Markets cheered growing hopes for Fed rate cuts after weak jobs figures. Traders are putting nearly 90% odds on a 25-basis-point cut in September. Some even expect a bigger 50-point move.
Still, US stocks mostly rise as markets await inflation data, such as the producer-price index on Wednesday and the consumer-price index on Thursday. These numbers may influence the Fed’s rate path.
Later on Monday, U.S. markets rallied. The S&P 500 climbed about 0.4%. The Nasdaq rose around 0.8%, while the Dow gained near 0.2%. Stocks like AppLovin and Robinhood surged after being added to the S&P 500 index. EchoStar also jumped.
This move followed Friday’s weak jobs report. Investors now expect the Fed will cut rates. But they still await inflation data to confirm the direction.
Globally, markets were upbeat too. Treasury yields dropped, and gold stayed high, amid renewed interest in rate cuts.
Analysts caution that rate-cut optimism may be tempered if inflation data surprises on the upside. The upcoming reports will be the key data of the week.
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