US stocks rose on Monday as Wall Street bounced back from a falling week and upcoming inflation readings spooked investors.
The S&P 500 (^GSPC) climbed nearly 1.2%, while the Dow Jones Industrial Average (^DJI) jumped 380 points, or 1.1%. The technology-heavy Nasdaq Composite (^IXIC) advanced 1.5%.
Sorrento Therapeutics (SRNE) was one of the big movers on Monday, wiping off nearly three-quarters of its value after the heavily shorted drugmaker working on a COVID-19 treatment filed for Chapter 11 bankruptcy protection in Texas.
Shares of Fidelity National Information Services (FIS) fell 12.5% after the payments company planned to spin off its merchant business and post a $17.6 billion loss following a failed acquisition.
In the coming week, investors will get earnings results from headliners including Airbnb (ABNB), Coca-Cola (KO), DraftKings (DKNG), Paramount Global (PARA), and Deere (DE).
On Friday, US stocks closed with their worst weekly performance of 2023 so far. The S&P 500 ended down 1.1% for the week, the Dow Jones Industrial Average down 0.2% and the Nasdaq Composite down 2.4%.
Wall Street is in for an eventful week of economic data with the consumer price index (CPI) rising on Tuesday, the government’s retail sales report in line for Wednesday, and the producer price index (PPI) set for release on Thursday.
Economists expect headline CPI to rise 0.5% month-over-month in January – a significant jump from figures seen in recent months – while the annual headline number is forecast to decline from 6.5% last month to 6.2%, Bloomberg shows. Compiled Estimates.
WASHINGTON, DC – FEBRUARY 07: Federal Reserve Board Chairman Jerome Powell speaks during an interview with David Rubenstein. (Photo by Julia Nichinson / Getty Images)
Tuesday’s CPI reading will come as Fed Chair Jerome Powell said in a speech last week that the fight against inflation is in its early stages, rekindling investor hopes for higher interest rates this year. For most of the year, many were betting that the US central bank would halt its interest rate hike campaign this year.
the story continues
“This process is going to take a long time, and it will not be easy,” Powell said last Tuesday in a sit-down interview with billionaire investor David Rubenstein at the Economic Club of Washington, DC. “We will probably need to do additional rate hikes.”
“The combination of strong economic data and Fed guidance (the January jobs report and Powell’s comments last week, mostly) have convinced markets that rates could remain ‘high for a long time,’” Nicholas Colas of DataTrek said in a note. Are.” “This week’s CPI report will be important in terms of giving the market more insight on this important issue.”
Last week, CME Group’s FedWatch tool, which measures market expectations for the federal funds rate, showed the highest likely range at the end of the year at 4.50-4.75%, or the current rate. The new model estimate is now 4.75-5.00%.
,
Alexandra Semenova is a reporter for Yahoo Finance. follow him on twitter @alexandraandnyc
Click here for latest trending stock tickers from Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple Or Android
Follow Yahoo Finance Twitter, Facebook, Instagram, menu, LinkedInAnd youtube
Source: finance.yahoo.com
