Business

Wall Street gains as investors eye forthcoming economic data

People are seen on Wall Street in front of the New York Stock Exchange (NYSE) in New York City, the United States, March 19, 2021. REUTERS/Brendan McDermid/File Photo Acquire License Rights

  • China’s ADRs rise on measures to stimulate markets
  • 3M rises on reports of a possible litigation settlement
  • Indices: S&P 500 +0.26%, Nasdaq +0.42%, Dow +0.35%

August 28 (Reuters) – Wall Street rose on Monday, with gains from 3M and Goldman Sachs ahead of key inflation and employment data this week that will provide further clues to the Federal Reserve’s interest rate path.

All three major stock indexes rose as investors digested Fed Chair Jerome Powell’s comments last Friday that the Federal Reserve may need to raise interest rates further to ensure inflation is contained.

Focus now shifts to a report on the consumer spending index, the Fed’s preferred indicator of inflation, to be released on Thursday and nonfarm payrolls data to be released on Friday.

“The fact that Powell hasn’t come out to say anything particularly aggressive or particularly worrying for the markets — while not outright dovish, has proven that this is a rather risk-on day,” Ross said Mayfield, investment strategy analyst at Baird.

Megacap stocks were mixed: Nvidia (NVDA.O) and Meta Platforms (META.O) were each up about 1%, while Tesla (TSLA.O) and Amazon (AMZN.O) were each down nearly 1%.

3M (MMM.N) rose 5% after it was announced that the company had agreed to pay more than $5.5 billion to settle more than 300,000 lawsuits alleging it had US military sold defective combat earplugs.

Goldman Sachs (GS.N) rose 1.4% after the lender struck a deal to sell an investment advisory firm to asset management firm Creative Planning LLC.

Out of 11 S&P 500 sector indexes, eight were up, led by real estate (.SPLRCR) up 0.79%, followed by communication services (.SPLRCL) up 0.52%.

The S&P 500 rose 0.26% to 4,417.33 points.

The Nasdaq gained 0.42% to 13,648.23 points, while the Dow Jones Industrial Average rose 0.35% to 34,468.19 points.

China halved stamp duty on stock trading effective Monday to boost its struggling market, prompting a surge in US-listed shares of Chinese companies including JD.com, Baidu and Alibaba between 1.4% and 2.7%.

US Commerce Secretary Gina Raimondo discussed concerns with China Commerce Minister Wang Wentao about the restrictions on American companies such as Intel (INTC.O) and Micron (MU.O). Micron’s shares gained 2%, while Intel’s was up 0.5%.

The U.S. Federal Trade Commission has stayed its challenge to Amgen (AMGN.O)’s $27.8 billion purchase of Horizon Therapeutics (HZNP.O). Horizon shares are up 5.5%.

In the S&P 500 (.AD.SPX), rising issues outpaced falling ones by a ratio of 2.3 to one.

The S&P 500 posted 8 new highs and 1 new low; The Nasdaq recorded 49 new highs and 133 new lows.

Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru and by Noel Randewich in Oakland, California; Edited by Shounak Dasgupta and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

Acquire license rights, opens new tab

Shristi is a correspondent and part of the Markets team, covering the US, UK, Canada, Europe and Emerging Markets equity markets.

Source: www.reuters.com

Show More

Robert Wilson

Business & economics analyst. Breaking down intricate financial trends for informed decision-making.

Read Next

Back to top button