US benchmark equity indexes rose ahead of Tuesday's close as markets awaited official inflation data for September due later in the week. The Nasdaq Composite was up 1.4% at 18,176.9, while the S&P 500 rose 1% to 5,751.9. The Dow Jones Industrial Average advanced 0.4% to 42,104.2. Among sectors, technology led the gainers, reflecting a renewed investor interest in tech stocks, which have shown resilience amidst economic fluctuations.
Only energy and materials posted declines, indicating concerns over fluctuating commodity prices and their impact on corporate profit margins. The anticipation surrounding the upcoming inflation data is palpable. Official data are likely to show Thursday that US consumer inflation last month rose 0.1% sequentially and 2.3% annually, according to a Bloomberg survey.
This less than aggressive inflationary pressure could reassure investors and potentially steer monetary policy in a favorable direction. Adding to this narrative, the US producer prices report for September is scheduled for Friday, which could provide further insights into pricing trends and inflation expectations.
Investors often look towards these reports as essential indicators of the economic landscape. In terms of treasury yields, the US 10-year yield rose 1 basis point to 4.03%, while the two-year rate fell 3.1 basis points to 3.97%. These movements suggest a nuanced market sentiment where long-term growth expectations blend with short-term interest rate considerations.
Meanwhile, the commodities market saw West Texas Intermediate crude oil slump 4.2% to $73.88 a barrel, reflecting ongoing volatility in energy prices that could have wider implications for inflation and consumer spending. With the specter of economic reports looming, market participants remain on edge, keenly watching for guidance that could shape the investment strategies moving forward. $US30 $US500.