From Sept. 9 to 13, U.S. stocks saw significant upward momentum, with all major indexes posting solid gains.
U.S. stocks climbed on Monday as markets rebounded strongly from the previous week’s selloff. The S&P 500, the Dow Jones Industrial Average and the Nasdaq each gained 1.2%, with the S&P 500 breaking a four-day losing streak.
As equities advanced, bond markets showed a slight decline in yields, with the 10-year Treasury Yield falling to 3.7%.
Year-to-date, the 10-year yield has dropped 23.8 basis points.
On Tuesday, U.S. stocks closed mixed as investors awaited Wednesday’s release of the August Consumer Price Index report. Notably, traders began pricing in the possibility of a 25 basis point Federal Reserve rate cut later this year.
In the commodities market, oil continued its downward trajectory, closing at $66.31 per barrel, representing a daily loss of 3.6% and a year-to-date decline of 7.5%.
Stocks surged on Wednesday following an optimistic CPI report. The August CPI report showed a year-over-year inflation rate of 2.5%, down from 2.9% in July.
This marked the smallest annual increase since early 2021, moving inflation closer to the Fed’s 2% target. Core CPI, which excludes food and energy, rose slightly more than expected, primarily due to increases in shelter and transportation services.
Markets rallied on Thursday as inflation data bolstered expectations of an upcoming Fed rate cut. The S&P extended a four-day winning streak, gaining 0.7%, while the Dow increased by 0.6% and the Nasdaq surged by 1.0%.
Gold reached a new all-time high with a 1.9% gain for the day, contributing to an impressive 24.9% year-to-date return.
Friday closed the week as Wall Street had a strong performance, with the rising by 0.7%. The S&P and the Nasdaq also saw gains, closing higher by 0.5% and 0.6% respectively.
Nvidia was a significant contributor to the market’s rise, with its stock increasing by nearly 16% over the week. Regarding commodities, crude oil prices declined as the International Energy Agency reduced its oil demand forecast for 2025.
Overall, the S&P rose by 3.12%, reflecting strength across sectors. Meanwhile, the Dow, driven by gains in blue-chip stocks, increased by 1.93%. The Nasdaq, heavily weighted by technology stocks, outperformed other indexes with a 4.91% surge.
U.S. markets saw strong performance during the week, with all major indexes gaining momentum, bolstered by optimistic inflation data and expectations of a Fed rate cut.
This presents a favorable environment for investors, especially in sectors like technology, which saw significant gains led by Nvidia’s recovery. However, with ongoing fluctuations in bond yields and oil prices, investors should remain cautious and continue to monitor macroeconomic factors as they plan their next moves.
