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- Monday saw stocks gain modestly as bond yields retreated from August highs.
- But a larger rally could be complicated by a higher-for-longer interest rate regime.
Stocks saw modest gains on Monday as investors tried to claw back the month’s losses amid lower bond yields and a busy week of economic data points.
Equities gained as the 10-year Treasury yield retreated from August highs above 4.3%, although last week’s central bank symposium reaffirmed a higher-for-longer interest rate regime. In his remarks, Chairman Jerome Powell noted that the Federal Reserve would “proceed carefully” with further hikes and could stay aggressive if inflation persists.
Markets think the Fed will keep rates steady at its policy meeting next month, but see about 50% odds that the central bank raises interest rates by a quarter of a percentage point in November.
Upcoming inflation data this week will further inform investors about the potential path of monetary policy. The latest Personal Consumer Expenditures Price Index data, the Fed’s preferred gauge of inflation, will be released Thursday, followed the August nonfarm payrolls report on Friday.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Monday:
Here’s what else is going on today:
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil was up 0.36% to $80.12 a barrel. Brent, the international benchmark, edged lower to $84.47 a barrel.
- Gold gained 0.4% to $1,947.70 an ounce.
- The yield on the 10-year Treasury declined 3.7 basis points to 4.202%.
- Bitcoin slid 0.37% to $25.993.9.
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