In today’s financial market action, technology stocks took the lead in propelling the broader market higher on Monday, while market participants remain watchful of the forthcoming August inflation report scheduled for Wednesday.
The Nasdaq Composite surged by 1.1%, while the S&P 500 recorded a 0.7% gain. The Dow Jones Industrial Average also registered an uptick of approximately 88 points or 0.3%. Apple Inc., which had been a weight on the market’s performance last week, managed to rally with a 0.7% increase. Market enthusiasts eagerly anticipate an Apple event set to take place on Tuesday, where the tech giant is expected to unveil its latest lineup of iPhones, among other devices.
However, the spotlight of the week undoubtedly remains focused on Wednesday’s release of the consumer price index (CPI), as investors keenly analyze its implications.
Louis Navellier, the founder of Navellier & Associates, expressed, “The focus of the week is inflation data, even though expectations are almost zero that the Fed will increase rates again this month. The market is holding up fairly well compared to the last couple of Septembers, and it is encouraging that we should have a strong 4th quarter.”
In addition to Tuesday’s Apple event and the forthcoming CPI data, market participants are closely monitoring the ongoing negotiations between the United Auto Workers (UAW) and major automakers Ford Motor, General Motors, and Stellantis, the parent company of Chrysler. The current labor agreement between UAW and these automakers is set to expire on Thursday at 11:59 p.m.
Edward Moya, an analyst at Oanda, noted, “For Wall Street, Thursday’s focus should center around the UAW strike deadline, which arrives just before midnight. A potential UAW strike lasting 10 days could trigger a recession for the Michigan economy and cost the U.S. GDP approximately $5.6 billion. The trajectory of equity markets will largely depend on how the significant market events of this week influence investors’ sentiments following last week’s dip.”
