On Monday, U.S. stocks made a strong comeback after experiencing the S&P 500’s worst week since early 2023. The S&P 500 rose by 0.7%, bouncing back from a 1.7% decline last week. The Dow Jones Industrial Average also saw a rise, gaining 0.6% (over 250 points), while the tech-heavy Nasdaq Composite led the recovery with a 0.9% increase.
This recovery follows a week of uncertainty, with investors focused on inflation and its potential impact on the Federal Reserve’s upcoming decisions on interest rates. The recent jobs report left Wall Street uncertain about how aggressively the Federal Reserve will cut rates at their next meeting. There is still speculation over whether the Fed will opt for a 25 or 50 basis point cut, with recent comments from Fed officials leaning toward a smaller, 0.25% cut. However, they have also suggested that the final decision will depend on incoming economic data.
The attention now shifts to the consumer inflation report due on Wednesday, which is expected to offer more clues on the future direction of interest rates. Following this, a producer inflation report on Thursday will provide additional insights before the Federal Reserve’s policy meeting on September 18.
Adding to the week’s events, Apple is set to hold its annual iPhone event on Monday, where it is expected to unveil the iPhone 16 line and updates to its AI features. This event is closely watched, especially as competitors like Huawei challenge Apple’s dominance in the tech market.
