U.S. consumer spending rose solidly in July, suggesting the economy remained strong while prices rose moderately.
“Investors “We’re seeing another sign that we’re in for a soft landing,” said Cameron Dawson, chief investment officer at Newedge Wealth. “It’s another one of those Goldilocks-type reports that’s really hitting the nail on the head. The market is really getting exactly what it wanted.”
A “perfect” (Goldilocks) economy has steady growth, but not so high as to fuel excessive inflation.
Amazon.com and Tesla rose more than 3% each. Broadcom rose nearly 4%, while Marvell Technology jumped 9% after the chipmaker forecast quarterly results above estimates. The personal consumption spending report came Friday after Federal Reserve Chairman Jerome Powell last week expressed support for an imminent policy tightening. Next week’s economic data includes the Labor Department’s August jobs report, due Friday.
Money markets suggest traders mostly expect the Fed to cut rates by 25 basis points in September, with the odds of a 50 basis point cut further reduced after Friday’s data, according to CME Group’s FedWatch tool.
A tumultuous month on Wall Street ended on Friday after signs of a sudden moderation in the labor market in early August sparked fears of a U.S. recession. The influence of the Japanese yen carry trade worsened the fall.
Stocks have since recovered and the S&P 500 is trading near all-time highs.
Before Monday in the United States stock market Due to the Labor Day holiday, volume on U.S. exchanges was relatively light, with 11.2 billion shares traded, compared with an average of 11.4 billion shares over the previous 20 sessions.
The S&P 500 rose 1.01% to close at 5,648.40 points.
The Nasdaq Composite Index rose 1.13% to 17,713.62 points, while the Dow Jones Industrial Average rose 0.55% to 41,563.08 points.
All 11 S&P 500 sector indexes rose, led by consumer discretionary, up 1.9%, followed by a 1.1% gain in industrials.
For the month, the S&P 500 rose 2.3%, the Dow added 1.8% and the Nasdaq gained 0.6%.
Nvidia rose 1.5%, rebounding from a 6.4% drop on Thursday after the artificial intelligence chipmaker failed to meet sky-high investor expectations despite upbeat results and a forecast in line with expectations.
Novavax rose 8.6% after the U.S. Food and Drug Administration granted emergency use authorization for an updated version of its COVID vaccine.
Ulta Beauty fell 4% after cutting its annual earnings forecast, citing slowing demand for higher-priced cosmetics and fragrances at its stores.
Intel rose nearly 10% after a report that it was exploring options that could include a merger.
Dell Technologies, another AI-related stock, rose 4.3% after raising its annual revenue and profit forecasts.
Shares of Trump Media & Technology Group, majority-owned by former US President Donald Trump, fell 1.7% to a record low, leaving its market value at $3.9 billion.
Advancing stocks outnumbered declining stocks in the S&P 500 by a ratio of 6.6 to one.
The S&P 500 posted 79 new highs and two new lows; the Nasdaq posted 84 new highs and 77 new lows.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.