Stocks extend gains as investors await CPI data

US stocks rose on Monday as Wall Street got closer to the highly anticipated inflation data this week.

The S&P 500 rose 0.7%, while the Dow Jones Industrial Average added 140 points, or 0.4%. The technology-heavy Nasdaq Composite advanced 0.7%. The moves come after all three major averages posted weekly gains for the first time in three weeks: The S&P 500 and Nasdaq both gained more than 4% during the abbreviated week, while the Dow rose 3.2%.

In commodities, oil prices rose, extending the recent streak of back and forth movement. West Texas Intermediate (WTI) and Brent crude futures rose nearly 2% to $88.44 per barrel and $94.58 per barrel, respectively.

everybody Eyes on August Consumer Price Index (CPI) It is due for release before markets open on Tuesday.

Economists polled by Bloomberg expected the headline CPI to rise 8.1% from a year earlier in August, moderating from an 8.5% increase in July. On a monthly basis, the CPI is expected to show a decline in prices of 0.1% from July to August, mainly due to the continuing decline in energy prices. If it materializes, it would be the first monthly decline since May 2020.

Core CPI, which strips out the volatile food and energy components of the report and is closely tracked by the Fed, is likely to have picked up a bit in August, up 6.1% from the same month last year, more than 5.9% year over year. . Annual increase in July.

The reading is likely to confirm to investors whether the Fed raises rates by 0.50% or 0.75% at its policy meeting later this month.

In recent weeks, federal policy makers have doubled down on the US central bank’s commitment to proceed with restrictive monetary policy for as long as necessary to restore price stability.

Federal Reserve Governor Chris Waller He said at a conference in Vienna, Austria on Friday He supports a “significant” increase in the benchmark interest rate at the Federal Reserve’s September 20-21 meeting.

Morning traffic along Constitution Avenue passes the US Federal Reserve in Washington, DC on August 18, 2022. - US central bankers remain committed to raising interest rates further to suppress price hikes, but agree that it would be appropriate to slow the pace of increases

Morning traffic along Constitution Avenue passes the US Federal Reserve in Washington, D.C. on August 18, 2022. – US central bankers remain committed to raising interest rates further to stem price hikes, but agree that it will be appropriate to slow the pace of increases “at some point.” “The Federal Reserve said August 17.” (Photo by MANDEL NGAN/AFP) (Photo by MANDEL NGAN/AFP via Getty Images)

“My expectation is that it will take some time before inflation returns to our 2 percent target, and that the FOMC will tighten policy until 2023,” Waller said. “The policy price should move purposefully above this neutral level to further constrain aggregate demand and exert more downward pressure on prices.”

CME مجموعة group Fedwatch puts the potential for a three-quarters percentage result at 90%, up from 69% two weeks ago.

List of Wall Street institutions also have They raised their bets to a 75 basis point increase This month including Bank of America, Goldman Sachs and Nomura.

Elsewhere in the markets, Twitter (TWTR) came into focus after the social media platform responded to a September 9 message from Elon Musk indicating that the company intended to enforce a takeover offer by Musk and demanded that Musk and his team comply with the terms of the agreement. Shares are down about 1% in early trading.

Disney (dis) was also closely watched on Monday after activist investor Dan Loeb appeared to back away from his latest effort for the company to sell or break up ESPN. Web hedge fund Third Point Management said in August it had bought a $1 billion stake in Disney. Shares were up about 2% early Monday.

“We have a better understanding of the potential of ESPN as an independent company and another pillar of Disney to reach a global audience to generate ad revenue and subscribers,” Loeb said in a tweet on Sunday After Disney CEO Bob Chapek He vowed to “put ESPN back on its growth trajectory.”

Occidental Petroleum Company (OXY) Shares rose slightly after a filing with the Securities and Exchange Commission Friday night showed that Warren Buffet’s Berkshire Hathaway boosted its stake in the oil conglomerate to 26.8%. Berkshire recently won regulatory approval to buy up to a 50% stake in OXY.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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