US stock markets experienced a notable recovery on Monday, bouncing back from the S&P 500's worst week since early 2023 as investors shifted their attention to inflation data that could impact the Federal Reserve's decisions regarding interest rate cuts.
During Monday's trade, the S&P 500 surged nearly 1.2%, while the Dow Jones Industrial Average jumped more than 450 points, also reflecting a 1.2% increase. The tech-heavy Nasdaq Composite followed suit, rising over 1%.
Among sectors, Financial, industrial, and energy stocks played a pivotal role in driving the market's resurgence, with megacap companies like Nvidia, Tesla, and Amazon leading the gains.
The market's rebound comes in the wake of uncertainty stemming from the August jobs report, which left Wall Street speculating about the Fed's next moves on interest rates.
Investors are now weighing the likelihood of a 25 or 50 basis point cut at the upcoming policy meeting.
Looking ahead, all eyes are on two critical inflation reports set to be released this week, with consumer price index data due on Wednesday, followed by producer price index data on Thursday.
These reports will serve as the final inflation indicators before the Fed's policy decision on September 18.
In the tech sector, Apple held its annual product unveiling event in Cupertino, California, where it introduced the iPhone 16 smartphone, announced updates to its entire Apple Watch lineup, and unveiled AirPods Pro 2 featuring new hearing protection capabilities.
Despite these significant announcements, Apple's stock remained relatively unchanged throughout the day.
On the bond markets, 10-year and 2-year rates were at 3.704% and 3.679%, respectively.