4:15pm: Markets tread carefully
Investors remained cautious ahead of key economic data, with the tech sector, led by Nvidia, seeing gains while overall market sentiment was subdued due to recent volatility.
As of 4pm, the S&P 500 remained flat, the Nasdaq Composite gained 0.2%, and the Dow Jones dropped 0.4%.
Nvidia surged 4%, leading a tech sector rally, while Wall Street remained cautious after a volatile previous week.
12:25pm: Tech stocks rally
US stocks were mixed in the early afternoon as investors readied for another week of key economic readings, with the Dow Jones dipping 0.2% to 39,404 points.
On the other hand, an 8% gain in Super Micro Computer and an almost 5% jump in Nvidia rallied tech stocks, which saw the Nasdaq up 0.5% at 16,832 points and the S&P 500 add 0.2% at 5,352 points.
“It has been a slow start to the week for markets, in what has been a remarkable sea-change compared to last week’s frenetic movements,” IG chief market analyst Chris Beauchamp commented.
“The August lull is firmly upon us, and while equities on Wall Street are continuing to claw back gains a cautious atmosphere prevails ahead of Wednesday’s inflation readings for the US and UK. Things might have calmed down but the nervousness hasn’t gone away entirely.”
10:55am: Oil prices rise on Mideast tensions
Oil has surged to its highest level in over a week as expectations of an Iranian strike on Israel rise once more, Chris Beauchamp at IG noted.
The WTI price, which serves as one of the primary global oil benchmarks is up 1.5% on Monday at just shy of $78 a barrel.
"The risk had appeared to recede last week, or at least had been pushed back, but an attack is on the cards once more, powering oil’s move higher from last week’s two-month low," Beauchamp commented.
9:46am: Stocks climb at open
Stocks enjoyed a positive start on Monday morning, avoiding a repeat of last week’s sell-off as anticipation built for inflation and retail sales data over the coming days.
The Nasdaq added 60 points to reach 16,805 on Monday’s opening bell, with the Dow Jones climbing 68 points to 39,565 and S&P 500 by 14 to 5,358.
Monday was scheduled to be a quieter day on Wall Street, with early gains coming after fears over the US economy had hit stocks globally early last week.
Attention this week has turned to Wednesday’s consumer price index reading and Thursday’s retail sales data as investors await further updates on how the US economy is faring after the Federal Reserve opted to keep interest rates unchanged late last month.
Among companies, Barrick Gold Corp was among the few big names reporting on Monday, with shares jumping 4.8% on news it had beat expectations over the second quarter on stronger output.
Bank KeyCorp (NYSE:KEY) soared 15.3% in the meantime after announcing a US$2.8 billion investment from The Bank of Nova Scotia in return for a 14.9% stake.
7:33am: Brighter start seen on Wall Street
US stocks are in line to rise on Monday morning, bringing a welcome sense of calm after a heavy sell-off a week ago.
Futures had the Dow Jones adding 51 points to reach 39,691 ahead of Monday’s opening bell, with the Nasdaq and S&P expected to climb 44 and 11 points respectively.
Stocks had taken a beating after worse-than-expected jobs data earlier this month stoked fears that the US economy was heading towards recession.
AJ Bell analyst Russ Mould noted further US economic data later this week could risk disrupting the calmer sentiment which has since returned though.
“Concern about the risks of a recession in the US could be either compounded or somewhat alleviated,” he commented ahead of inflation and retail sales data releases on Wednesday and Thursday respectively.
“The retail number [...] is the primary marker of consumer spending which, in turn, accounts for the majority of overall economic activity.”
Consumer and producer price data beforehand will likely provide clarity over the potential for a Federal Reserve base rate cut next month, with markets currently split over what policymakers will do.