US stocks finish higher as Apple orders and plunging gas prices fuel optimism ahead of inflation data
- US stocks closed higher, logging a fourth straight advance.
- All 11 of the S&P 500's sectors finished higher, and Apple was a winner on optimism over pre-orders for new products.
US stocks finished higher Monday, with tech behemoth Apple helping the market extend a winning streak ahead of fresh inflation data that will figure into the Federal Reserve's thinking on monetary policy.
All three of Wall Street's major equity indexes closed higher for a fourth consecutive session. The indexes last week marked their first weekly advance after three weeks of losses.
The 11 sectors that make up the S&P 500 rose Monday, led by the energy and information technology groups. Index heavyweight Apple charged up nearly 4% as Wall Street analysts noted strong pre-orders for the company's new series of iPhones 14s and Apple Watches. The new products will become available starting on Friday.
Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:
- S&P 500: 4,110.41, up 1.06%
- Dow Jones Industrial Average: 32,381.34, up 0.71% (229.63 points)
- Nasdaq Composite: 12,266.41, up 1.27%
Inflation expectations among American households declined in August as gas prices have pushed lower. The New York Federal Reserve's Survey of Consumer Expectations released Monday showed households expected the inflation rate to be at 5.7% one year from now, down from 6.2% in June.
The NY Fed's survey results arrived before Tuesday's consumer price inflation report for August from the Labor Department. Economists widely expect a headline reading of about 8.1% and a potential contraction on a monthly basis. Headline inflation was 8.5% in July.
"Last month's milder-than-expected inflation readings may have fueled hopes the Fed would hike rates less aggressively, but [Fed Chair Jerome] Powell has been clear that the bank won't stop until the job is done. And with market expectations of a less aggressive Fed moderated, investors may focus on other challenges the market faces, such as unrealistically high earnings estimates, and headwinds posed by an extremely strong US dollar," said Chris Larkin, managing director of trading at E-TRADE from Morgan Stanley, in a note.
Around the markets, motor club AAA said gas prices could dip below $3 a gallon as the summer driving season wraps up and oil declines. But Treasury Secretary Janet Yellen is warning that US gas prices could spike this winter as oil soars once Europe stops buying Russian crude.
The stock market is poised to surprise investors to the upside as inflation cools down, says Wharton professor Jeremy Siegel.
Investing legend Jeremy Grantham warns the S&P 500 could plunge another 26% — and says he's shorting the Nasdaq and junk bonds.
Wall Street analysts have been chopping down third-quarter earnings estimates for S&P 500 companies as executives have increasingly discussed potential recession risks.
Bitcoin moved up 3.7% to $22,431.29.
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