On Monday, S&P 500 and Nasdaq Composite surged adding to the gains seen late last week, as investors looked ahead to key inflation data.
The broad market index increased 0.47%. The Nasdaq Composite up 0.8%, while shares of Nvidia gained 5% to help the technology-heavy index climb. The Dow Jones Industrial Average hovered near the flatline.
Nvidia (NVDA) shares advanced 5% to help the Nasdaq’s jump. Peer technology stocks Microsoft (MSFT) and Apple (AAPL) were both were marginally higher.
The forthcoming batch of inflation data will be key for markets that remain nervous following increased volatility. Wednesday’s consumer price index report for July will be pivotal as to whether the economy remains sound, or if investors will remain uneasy following the July’s weak nonfarm payrolls report which contributed to the recent sell-off.
“We are optimistic that a short-term bottom was put in place, or came close to being put in place, on August 5th, when the S&P 500 closed down 8.5% from peak (within the range of a normal/healthy pullback of 5-10%) and important technical support levels [were] held,” RBC Capital Markets head of global equity strategy research Lori Calvasina wrote on Monday. “But we remain on guard for choppy conditions to persist for a while longer and don’t rule out a growth scare if economic data releases continue to disappoint.”
