Traders also got more clarity on candidates for the post of Federal Reserve chair next year as U.S. President Donald Trump, according to a report, said he narrowed his search to former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett.
Expectations for a dovish Fed chair have fueled hopes for interest rate cuts next year, even as inflation remains above the 2% target and persistent price pressures in other developed markets strengthen calls for a rate hike.
At 09:35 a.m. ET, the Dow Jones Industrial Average rose 108.61 points, or 0.20%, to 48,557.21. The S&P 500 gained 22.44 points, or 0.33%, to 6,849.85, while the Nasdaq Composite advanced 91.15 points, or 0.39%, to 23,286.32.
Of the 11 S&P 500 sectors, 10 were trading higher, with consumer discretionary up 1%, boosted by a 4.5% jump in Tesla.
AI chip giant Nvidia rose 1.1% and is set to snap a four-day losing streak, if gains hold. A broader index of chip stocks climbed 1.2%.
The S&P 500 and the Nasdaq had logged their steepest daily declines in more than three weeks on Friday, as worries of sticky inflation and debt-fueled AI investments pulled the indexes further away from record highs.These concerns have weighed on U.S. equities several times over the past three months, helping Europe’s STOXX 600 outperform the Nasdaq and the S&P 500 on a quarterly basis.
PLETHORA OF DATA THIS WEEK
The nonfarm payrolls figures for October and November are due on Tuesday. The October data was delayed by the government shutdown earlier this quarter.
Reports on business activity, weekly jobless claims and inflation, due later this week, will also be monitored as investors seek fresh clues on the economy’s resilience and the Fed’s next policy moves. Rate calls from Europe, the UK and Japan will add to a crowded central-bank calendar.
“With the Fed still appearing to be more focused on labor-market weakness than inflation, we’re likely facing a ‘bad news is good’ scenario for the jobs report,” said Chris Larkin, managing director, trading and investing at E*TRADE from Morgan Stanley.
A string of Fed officials are due to make remarks throughout the week, starting with Fed Governor Stephen Miran. The permanent voting member, as seen as on the dovish side, argued that current inflation does not reflect true supply-demand dynamics.
Among other stocks, ServiceNow slid 7.9% after a report said the cybersecurity company is in advanced talks to buy startup Armis.
IRobot slumped 68.5% after the Roomba vacuum-cleaner maker filed for bankruptcy protection.
Investors also monitored developments around plans to end Russia’s war in Ukraine.
Advancing issues outnumbered decliners by a 2.59-to-1 ratio on the NYSE and by a 1.57-to-1 ratio on the Nasdaq.
The S&P 500 posted 18 new 52-week highs and one new low, while the Nasdaq Composite recorded 65 new highs and 42 new lows.
