Stocks rise on Wall Street, building on gains from last week

NEW YORK (AP) — Stocks rose in morning trading on Wall Street Monday as the market builds on a rally last week that broke a three-week losing streak.

The S&P 500 index rose 1.1% as of 10:11 a.m. Eastern. The Dow Jones Industrial Average rose 262 points, or 0.8%, to 32,417 and the Nasdaq rose 1.2%.

Technology companies and retailers led the gains. Apple rose 2.2% and Amazon rose 1.8%.

Energy stocks gained ground as U.S. crude oil prices rose 1.4%. Chevron rose 2.3%.

Markets in Europe also rose, while markets in Shanghai, Hong Kong and Seoul were closed for holidays.

Bond yields mostly fell. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, slipped to 3.28 from 3.32% late Friday. The two-year Treasury yield, which tends to track expectations for actions by the Federal Reserve, fell to 3.54% from 3.56%.

Investors face a busy week of inflation updates as they continue to closely watch how consumers and businesses cope with the worst inflation in four decades. The main focus is on the Federal Reserve, which has been raising interest rates in an effort to tame inflation. Wall Street is concerned that the central bank could hit the brakes too hard on the economy and throw it into a recession.

The concerns have created a volatile market over the past few months. Investors are hoping that any sign of easing inflation might signal to the Fed that it can also ease up on rate hikes. It has already raised rates four times this year and markets expect it to deliver another jumbo-sized increase of three-quarters of a percentage point at its meeting next week.

Fed officials, including Chair Jerome Powell, have all reaffirmed the central bank’s determination in raising rates until inflation is under control.

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