Stocks rose broadly in morning trading on Wall Street
Monday as investors prepare for a busy week of updates on inflation.
The S&P 500 rose 0.8% as of 10:26 a.m. Eastern. The Dow
Jones Industrial Average rose 258 points, or 0.8%, to 33,062 and the Nasdaq
Small-company stocks outpaced the broader market’s gains in
a sign that investors were confident about the economy. The Russell 2000 rose
Clean energy companies gained ground following the Senate’s
approval for Democrats’ big election-year economic package, which includes
funding to help fight climate change. First Solar rose 8.8%.
Bond yields fell. The yield on the 10-year Treasury slipped
to 2.78% from 2.83% late Friday.
Investors remain focused on inflation and its impact on
businesses and consumers, along with the Federal Reserve’s2 efforts to fight
higher prices. The central bank has been aggressively raising interest rates to
pump the brakes on economic growth and rein in record-high inflation. The Fed
is expected to hike short-term interest rates by another 0.75 percentage points
at its next meeting.
Wall Street is worried that the Fed could hit the brakes
too hard on the economy and bring on a recession. Updates this week on
inflation could provide more clarity on whether the Fed will remain aggressive.
The Labor Department will release its July report for
consumer prices on Wednesday, followed by the July report for prices at the
wholesale level on Thursday.
This week’s inflation updates follow reports last week
showing the employment market remains strong. While that’s good for the
economy, it has complicated the job of the Fed, which may be forced to continue
with aggressive interest rate hikes intended to cool the economy and soaring
Investors are still reviewing the latest round of corporate
earnings, which could also provide more details on how hard inflation is
hitting consumers and businesses. Nvidia fell 5.5% after it warned investors
that its second-quarter revenue will fall short of forecasts because of weaker
Generic drugmaker Viatris rose 8% after beating Wall
Street’s second-quarter earnings and revenue forecasts.