Indexes Rise Ahead of CPI – US Market Wrap

A renewed wave of dip buying spurred a rebound in stocks after a selloff triggered by economic concerns, with traders now looking to this week’s inflation data for clues on the size of Federal Reserve rate cuts.

Almost every major group in the S&P 500 increased, with the benchmark up 1.2%. That comes after the worst September start on record, according to Bespoke Investment Group data dating back to 1953. Nvidia and Tesla lead the megacap advances. Apple unveiled the iPhone 16, with CEO Tim Cook stating that it was designed with artificial intelligence “from the ground up.” The stock closed barely changed following an almost 2% drop.

Treasuries saw mild moves, with traders paring the chance of a half­point rate reduction at the Fed’s upcoming September meeting to about 20% from as high as 50% last week. At the same time, some options traders wagered on an increase in the amount of Fed easing expected by December or March.

The S&P 500 closed near 5,471. The Nasdaq 100 gained 1.3%. The Dow Jones Industrial Average added 1.2%. The Russell 2000 rose 0.3%. Boeing rallied 3.4% on optimism that a labor deal will avert a strike. Alphabet sank 1.7% as Google headed back to court to face US Justice Department allegations it manipulates the display advertising market.

Treasury 10-year yields were little changed at 3.70%. The dollar gained. Bitcoin rose to around $57,000.