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Wall Street closed higher on Monday, led by a rally in energy and tech stocks. The market closed its fourth winning day in a row as investors expected the upcoming CPI data to show that inflation has cooled off, even if slightly. Inroads made by the Ukrainian forces in the war against Russia also kept investor mood upbeat, but they remain apprehensive about further interest rate hikes from the September Fed meeting. All three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.7% or 229.63 points, to close at 32,381.34. Twenty-seven components of the 30-stock index ended in the positive territory, while three ended in the negative.
The tech-heavy Nasdaq Composite increased by 154.10 points or 1.3% to 12,266.41, led by a rally in tech stocks.
The S&P 500 rose 1.1%, or 43.05 points, to end at 4,110.41. All 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) rose 1.8%, 1.6% and 1.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) increased 4.7% to 23.87. A total of 9.6 billion shares were traded on Monday, lower than the last 20-session average of 10.2 billion. Advancers outnumbered decliners on the NYSE by a 3.37-to-1 ratio. On the Nasdaq, a 1.78-to-1 ratio favored the advancing issues.
Investors Eagerly Await CPI Report
Wall Street is keeping a close watch on the Consumer Price Index (CPI) report for August, which is slated to be released on Tuesday. Expectations are that after declining to 8.5% year over year in July from a 42-year high of 9.1% in June, inflation might settle in the region of 8% for the month of August. If it goes down even further, one may surmise that the Fed is seeing success with its monetary policy tightening and is considering easing off a bit. Core CPI, which excludes food and oil prices, has, however, continued its journey northward, increasing over the past couple of months, from 5.7% in June to 5.9% in July. If this number continues to rise, apprehension remains that the Fed would not be deterred from a 75 bp interest rate hike in its next meeting.
Stocks have rallied in recent sessions and market participants have been on a buying spree, rising above concerns over the economic outlook, expecting the inflation numbers to decline. This will also give them an idea about whether the Fed is likely to ease off in its policies going forward. Tech and energy stocks were the biggest gainers on Monday.
Reports came in on Sunday that Ukraine has retaken many villages and towns around Kharkiv, the nation’s second-largest city, and has put some Russian forces in retreat.
Especially, the fall of Izium in Kharkiv is being hailed as one of Moscow's worst defeats since its troops were forced back from the capital Kyiv in March. Ukraine is calling it a turning point in the war, as Russian forces used Izium as the logistics base for their Donbas campaign.
Investors see this as good news coming in from the war-torn country and markets reacted accordingly, keeping in mind that much of the volatility seen in recent months can be solely accredited to Russia’s campaign there. This is indeed one of the few stories of a successful counter-offensive launched by Ukraine in recent months, and makes investors ponder whether the tide is turning.
Economic Data
No economic data was released on Monday.
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Stock Market News for Sep 13, 2022
Wall Street closed higher on Monday, led by a rally in energy and tech stocks. The market closed its fourth winning day in a row as investors expected the upcoming CPI data to show that inflation has cooled off, even if slightly. Inroads made by the Ukrainian forces in the war against Russia also kept investor mood upbeat, but they remain apprehensive about further interest rate hikes from the September Fed meeting. All three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.7% or 229.63 points, to close at 32,381.34. Twenty-seven components of the 30-stock index ended in the positive territory, while three ended in the negative.
The tech-heavy Nasdaq Composite increased by 154.10 points or 1.3% to 12,266.41, led by a rally in tech stocks.
The S&P 500 rose 1.1%, or 43.05 points, to end at 4,110.41. All 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) rose 1.8%, 1.6% and 1.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) increased 4.7% to 23.87. A total of 9.6 billion shares were traded on Monday, lower than the last 20-session average of 10.2 billion. Advancers outnumbered decliners on the NYSE by a 3.37-to-1 ratio. On the Nasdaq, a 1.78-to-1 ratio favored the advancing issues.
Investors Eagerly Await CPI Report
Wall Street is keeping a close watch on the Consumer Price Index (CPI) report for August, which is slated to be released on Tuesday. Expectations are that after declining to 8.5% year over year in July from a 42-year high of 9.1% in June, inflation might settle in the region of 8% for the month of August. If it goes down even further, one may surmise that the Fed is seeing success with its monetary policy tightening and is considering easing off a bit. Core CPI, which excludes food and oil prices, has, however, continued its journey northward, increasing over the past couple of months, from 5.7% in June to 5.9% in July. If this number continues to rise, apprehension remains that the Fed would not be deterred from a 75 bp interest rate hike in its next meeting.
Stocks have rallied in recent sessions and market participants have been on a buying spree, rising above concerns over the economic outlook, expecting the inflation numbers to decline. This will also give them an idea about whether the Fed is likely to ease off in its policies going forward. Tech and energy stocks were the biggest gainers on Monday.
Consequently, shares of APA Corporation (APA - Free Report) and Fortinet, Inc. (FTNT - Free Report) advanced 5% and 4.2%, respectively. Fortinet carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Ukraine’s Success Lifts Investor Mood
Reports came in on Sunday that Ukraine has retaken many villages and towns around Kharkiv, the nation’s second-largest city, and has put some Russian forces in retreat.
Especially, the fall of Izium in Kharkiv is being hailed as one of Moscow's worst defeats since its troops were forced back from the capital Kyiv in March. Ukraine is calling it a turning point in the war, as Russian forces used Izium as the logistics base for their Donbas campaign.
Investors see this as good news coming in from the war-torn country and markets reacted accordingly, keeping in mind that much of the volatility seen in recent months can be solely accredited to Russia’s campaign there. This is indeed one of the few stories of a successful counter-offensive launched by Ukraine in recent months, and makes investors ponder whether the tide is turning.
Economic Data
No economic data was released on Monday.