Wall Street extends gains; Nasdaq and S&P 500 rise for the eighth consecutive session.
The optimism behind the rally is the hope that rate cuts remain on the table and that the Fed might ease monetary policy in September.
On Monday, all sectors closed in the green, with the biggest gains coming from communication and technology companies, both up 1.44%. In the Dow Jones, McDonald’s stood out.
The three major Wall Street indices closed higher on Monday, continuing the rally of their best week this year, as investors awaited monetary policy updates from the Jackson Hole symposium.
The Dow Jones, composed of 30 large-cap companies, gained 0.58% to close at 40,896.53 points. The S&P 500, comprising 500 stocks, rose by 0.97% to 5,608.25 points, while the Nasdaq Composite advanced by 1.39% to 17,876.77 points.
The S&P 500 and Nasdaq extended their winning streaks to eight consecutive sessions. This positive performance is attributed to stocks continuing to recover after the sharp sell-off two weeks ago, driven by recession fears.
Several analysts have revised their forecasts for the U.S. economy. Among them, Goldman Sachs experts adjusted the likelihood of the U.S. entering a recession in the next 12 months from 25% to 20%.
Recent data has shown consumer resilience despite economic weakening, raising expectations that the Federal Reserve may cut rates in September, with a reduction of 25 basis points expected, bringing the rate down to 5.25% – 5%.
The optimism behind the rally is the hope that rate cuts remain on the table and that the Fed might ease monetary policy in September.
Among the top-performing companies, Advanced Micro Devices (up 4.54%) gained after news that the chipmaker acquired ZT Systems for $4.9 billion to expand its AI portfolio and better compete with Nvidia.
By sector, all closed in positive territory. The biggest advances came from communication and technology companies, both up 1.44%. Within the Dow Jones, McDonald’s led the gains (up 3.25%), followed by Intel (up 3.11%) and Amgen (up 2.03%).
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