Reuters
US stocks staged a rebound on Monday from last week's painful losses.
The S&P 500 gained just over 1%, recouping about a quarter of its 4% decline last week.
Investors pushed stocks higher ahead of key inflation data this week.
The consumer price index report for August will be released Wednesday morning. Average economist estimates suggest prices rose 2.6% year-over-year last month, a sizable drop from the 2.9% reading seen in July.
According to Capital.com senior market analyst Daniela Hathorn, a light CPI reading could help determine whether the Federal Reserve cuts interest rates by 25 or 50 basis points at its policy meeting next week.
"The disinflation process has stalled in recent months but if forecasts are right, the August drop could see expectations lean closer to a 50 basis point cut throughout this week, possibly giving risk assets another leg higher," Hathorn said in an email.
The CME FedWatch Tool shows investors expect a 25 basis point rate cut from the Fed next week, with just a 25% chance for a 50 basis point cut.
The CPI data will be followed by the producer price index on Thursday morning, which market veteran Louis Navellier believes will help push yields lower.
"With the Fed's favorite inflation indicator, the core Personal Consumption Expenditure (PCE) index rising at only a 1.7% annual pace in the past three months, I am expecting favorable CPI and PPI data to further help drive Treasury yields lower," Navellier said in a Monday note.
Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:
Here's what else happened today:
In commodities, bonds, and crypto:
