4:15pm: Markets close on a positive note
The Nasdaq powered higher at the close to end the new trading week on the front foot.
At 4pm ET, the tech-heavy Nasdaq had gained 1.4% at 17,877 points, the S&P 500 had added 1% at 5,608 and the Dow Jones finished at 40,897 for a 0.6% advance on the day.
3:00pm: FOMC meeting minutes to offer clued
In a week with limited economic data releases, investors should turn their attention to the minutes from the July 31st FOMC meeting, says Bill Adams, Chief Economist for Comerica Bank.
“Following last week's tame inflation prints, markets are pricing in a meaningful possibility of a half percentage point rate cut at the next meeting in September. However, a quarter percentage point cut seems more likely, since monetary policymakers are still concerned about the momentum that built up in inflation in recent years, consumer spending is solid, and the unemployment rate is only slightly above the level where Fed policymakers expect it to average over the longer run,” Adams commented.
12:45pm: US dollar falls
Hopes of an imminent interest rate cut saw US stocks hold onto their gains in the early afternoon on Monday.
The Nasdaq added 0.6% at 17,733 points, the Dow Jones was up 0.6% at 40,889 points and the S&P 500 was up 0.6% at 5,585 points.
"The start of the week kicked off on a positive footing for stock index bulls with mostly further advances being made in low volume and volatility ahead of Wednesday's FOMC minutes and the end of week Jackson Hole symposium,” IG senior technical analyst Axel Rudolph commented.
Rate cut expectations, however, saw the US dollar fall to a seven-month low.
"Rate cut expectations of at least 25 basis points at the Fed's September meeting continue to put pressure on the US dollar with it depreciating to a seven-month low against a basket of major currencies,” Rudolph said.
“The gold price remains close to last week's record high around the $2,500 mark while the oil price stays under pressure on demand concerns."
11:15am: Fed monitoring labor market carefully
Key payroll revisions could tilt Fed Chair Jerome Powell's Jackson Hole message, according to Quincy Krosby, Chief Global Strategist for LPL Financial.
"It's been noticeable by markets that Fed Chair Powell has increasingly invoked the Fed's maximum employment mandate as he discusses the path of monetary policy," Krosby commented.
"Markets went through a formidable scare when the latest unemployment rate rose to 4.3% as there's a pattern that suggests that when unemployment rates begin to tick higher the pace tends to pick up.
"Powell has indicated that the Fed is monitoring the labor market carefully for indications of deterioration and stands ready to intervene if necessary.
"The most recent initial unemployment claims data, considered a key proxy for labor market trends, haven't signaled concerns, although continuing claims point to difficulties in securing new jobs."
9.52am: Stocks climb early on
US stocks enjoyed a positive start on Monday morning, as the Dow Jones, S&P 500 and Nasdaq looked to build on gains seen last week on growing hopes for base rate cuts soon.
The Dow Jones ticked up 142 points to 40,802 as the market opened, while the S&P 500 and Nasdaq added 9 and 26 points respectively.
This comes after a string of positive economic data last week helped fuel a week-long recovery for stocks, following a sell-off on fears earlier in the month that the US economy was heading for recession.
Figures also boosted expectations for base rate cuts by the Federal Reserve, with two policymakers at the central bank, Neel Kashkari and Mary Daly, signalling on Monday that debates could now be had over a reduction in September.
Minneapolis Fed President Kashkari noted “the balance of risks” had now shifted in the US following solid retail and unemployment data last week, alongside figures showing inflation was subsiding.
San Francisco Fed President Daly had said earlier on Monday that it was time to start considering base rate cuts.
8.19am: Wall Street set for positive start
Wall Street looked set to tick up on Monday’s opening bell, after a string of positive economic data drove a recovery last week following a global sell-off earlier in the month.
Futures had the Dow Jones just above the mark ahead of the opening bell, while the Nasdaq and S&P 500 also looked set to slightly tick up.
Shares had enjoyed gains last week as solid retail and weekly unemployment data, alongside figures showing inflation was moderating, appeared to quell fears that the US economy could be heading for recession on weak jobs figures previously.
Following the return of calm to the markets, this week brings a quieter schedule, with any indications on rate cuts from central bankers at Jackson Hole set to be in focus.
Last week’s data left markets pricing in a rate cut from September, though economists are still split over the depth of the reduction.
Among companies, Estee Lauder dipped over 3% in pre-market trading on Monday after the cosmetics firm underwhelmed with its 2025 outlook on weakness in China.
Palo Alto Networks ticked up by 0.6% in the meantime, ahead of the cybersecurity company’s own fourth-quarter update later today.