Traders work on the New York Stock Exchange floor on Aug. 8, 2024.
Spencer Platt | Getty Images
Stocks advanced on Monday, building on the market’s comeback as investors readied for the closely watched Federal Reserve symposium later this week.
The Dow Jones Industrial Average added 236.77 points, or 0.58%, to finish at 40,896.53. The S&P 500 rose 0.97% to close at 5,608.25, while the Nasdaq Composite jumped 1.39% and ended at 17,876.77. The S&P 500 and Nasdaq notched their eighth straight winning day, a first for both indexes in 2024.
Monday’s moves mark an extension of the recent recovery rally, which has been the latest turn amid a choppy stretch for equities. Notably, last week ushered in the biggest gains for the three major indexes this year.
August had a turbulent start after disappointing data fueled recession fears and bolstered concerns that the Federal Reserve was behind the curve on lowering interest rates. Those worries sparked a global sell-off, pushing the S&P 500 on Aug. 5 to record its worst day since 2022.
But fresh data last week seemed to subdue an anxious market and boost hopes that the economy can attain a soft landing scenario. Investors saw good stats on retail sales and initial jobless claims, in addition to strong earnings from Walmart. On top of that, the annualized inflation rate measured in July’s consumer price index touched its lowest level in more than three years.
“The market has almost fully recovered from the overblown recession fears earlier this month,” said Greg Marcus, managing director of UBS Private Wealth Management. But, “we expect volatility to remain high for the rest of the year.”
“While we do remain generally bullish, we don’t see a straight line up in the market,” he said. “The economy is slowing and there will likely be a mix of conflicting economic data points over the coming months, which is set to continue this recessionary debate.”
Now, investors are hoping for insights into the path of interest rates amid mounting hopes for a forthcoming cut. They will monitor Fed Chair Jerome Powell’s Friday speech at the central bank’s symposium in Jackson Hole, Wyoming. Before then, traders will parse minutes from the Fed’s most recent meeting due on Wednesday.
The Democratic National Convention also kicks off Monday.