U.S. stocks managed to bounce back with consecutive gains on Monday, seeking to regain lost ground after a turbulent August for equities. The Dow Jones Industrial Average (DJIA) surged by approximately 213 points, or 0.6%, settling near the 34,560 mark, as reported by FactSet’s preliminary data. Similarly, the S&P 500 index saw a 0.6% increase, and the Nasdaq Composite Index experienced a gain of 0.8% (+0.84%).
Investors Optimistic as August Comes to a Close
As the final week of August commenced, investors maintained an optimistic outlook. While they remained cautious about upcoming economic indicators, specifically Thursday’s inflation data and Friday’s monthly jobs report, these figures were expected to shed light on the Federal Reserve’s stance on interest rates and its ongoing battle against inflation.
Yields Ease After Last Week’s Surge
After last week’s significant surge to its highest level in over a decade, the 10-year Treasury yield (TMUBMUSD10Y) retreated slightly to around 4.20% late on Monday. This unexpected rise had caused concerns among investors, but the retreat offered some relief.
Mixed Performance for Major Indices in August
Despite the recent gains, the Dow still registered a decline of approximately 2.8% throughout the month of August. Similarly, the S&P 500 index experienced a downward trend with a 3.4% decrease, and the Nasdaq Composite index showed even greater losses at 4.5%, according to FactSet’s data.
In conclusion, U.S. stocks demonstrated resilience by securing back-to-back gains in an attempt to recover from a challenging August. With investors closely monitoring upcoming economic data, there is hope that these indicators will help guide the Federal Reserve’s decision-making process regarding interest rates and inflation.