US stocks rise strongly; inflation, Fed speakers in focus

U.S. stocks rose Monday (NASDAQ:MNDY ), extending its recent rally with the focus turning to upcoming inflation data and a slew of Federal Reserve speakers. 

At 09:32 ET (14:32 GMT), the Dow Jones Industrial Average rose 260 points, or 0.6%, the S&P 500 index rose 21 points, or 0.4%, while the NASDAQ Composite 100 Futures}} rose 65 points, or 0.3%.

The main Wall Street indices were continuing last week's gain in the wake of the US presidential election and the latest interest rate cut by the Federal Reserve, with all three average finishing Friday’s session at all-time closing highs.

Still, trading volumes are expected to be limited this session by the Veterans Day holiday. CPI data, Fed speakers due this week

Focus this week was squarely on upcoming consumer price index inflation data for October, for more signs that inflation is easing. 

The reading comes just a week after the Fed cut interest rates by 25 basis points, and reiterated that future easing will be largely dependent on the path of inflation. This week’s CPI data is expected to factor into the outlook for rates. 

While U.S. inflation did fall earlier in the year, it turned sticky in recent months amid persistent strength in the economy and the labor market. 

Beyond the CPI data, focus this week is also on addresses by a string of Fed officials, who are expected to offer more insight into the central bank’s plans for interest rates.

Futures on the federal funds rate have priced in another 25-basis-point rate cut next month, as well as another 67 bps of reductions for 2025.  "Animal spirits" to drive S&P higher 

There are no economic data of note expected Monday, but the quarterly earnings season is set to continue.

AbbVie (NYSE:ABBV ) stock fell x% after the drugmaker announced that its two phase 2 trials of a treatment for adults with schizophrenia missed its primary endpoint.

Sapiens International (NASDAQ:SPNS ) stock fell 16% after the insurance software company cut its annual revenue guidance and its Q3 results missed expectations.  

Evercore ISI expects sharp gains in the coming months, expecting the S&P 500 to hit 6,600 by mid-2025, driven by “animal spirits” ignited by the outcome of the US election.

Trump’s victory in the 47th US election provided the stock market with its largest post-election day gain in more than a century. 

This favorable market reaction is not simply a short-term bounce, Evercore said, but signals the start of a broader "performance chase" that will likely lift the market significantly over the coming months. Crude slips as China disappoints 

Oil prices retreated as traders digested the latest stimulus plan from top importer China as well as the easing of any supply disruptions from Hurricane Rafael.

By 09:32 ET, the Brent contract slipped 2.4% to $72.06 per barrel, while U.S. crude futures (WTI) traded 2.7% lower at $68.50 per barrel.

Prices weakened on Friday after Beijing approved about 10 trillion yuan ($1.4 trillion) in measures aimed at lowering government debt levels. But a lack of targeted measures for private consumption largely left investors wanting more, especially as data over the weekend showed persistent Chinese deflation.

In the U.S., fears of immediate disruptions in production eased as Hurricane Rafael weakened into a tropical storm as it made landfall in Cuba.

(Ambar Warrick contributed to this article.)

 

Source: Investing.com