Stocks Climb As Dip Buyers Emerge After Selloff: Markets Wrap
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A renewed wave of dip buying spurred a rebound in stocks after a selloff triggered by economic concerns, with traders now looking to this week’s inflation data for clues on the size of Federal Reserve rate cuts.
The S&P 500 halted a four-day losing streak as buyers scooped up bargains. The equity gauge bounced back following its worst start to a September since data going back to 1953, according to data compiled by Bespoke Investment Group.
“We’re seeing mostly technical dip-buying,” said Tom Essaye at The Sevens Report. “Economic growth is undoubtedly and clearly losing momentum, but a soft landing remains more likely than a hard landing. This week focus turns back to inflation.”
Traders pared the chance of a half-point rate reduction at the Fed’s upcoming September meeting to about 20% from as high as 50% last week.
The market has been divided for weeks on whether tamed inflation and signs of deterioration in employment figures will prompt the Fed to kick-off its easing campaign with a 25-basis-point cut — the standard move — or something larger. Investors are also unsure of what comes next, and whether the US central bank will aggressively lower rates or adopt a more gradual approach.
The S&P 500 rose 0.8%. The Nasdaq 100 climbed 0.9%. The Dow Jones Industrial Average added 0.6%. While Apple Inc.’s iPhone 16 line will be the focus of its product launch event Monday, its slumping wearable-device business is poised to get a boost as well. The event kicks off from the company’s headquarters in Cupertino, California, at 10 a.m. local time.
Treasury 10-year yields advanced two basis points to 3.73%. The dollar gained.
Corporate Highlights:
Key events this week:
Some of the main moves in markets:
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Cryptocurrencies
Bonds
Commodities
