Dow climbs 100 points to start the week as market relief rally increases

Stocks rose on Monday as Wall Street eagerly awaits key inflation data to be released this week.

The Dow Jones Industrial Average gained 128 points, or 0.4%. The S&P 500 rose 0.6% and the Nasdaq Composite added 0.6%

The moves came after a winning week for US equities as all three major averages snapped a three-week losing streak. The Dow Jones gained 2.6% on the week, while the S&P 500 gained 3.7%. The Nasdaq Composite was 4.1% higher.

Stocks have been volatile ahead of the Federal Reserve’s September meeting, where the central bank is expected to make its third straight hike of 0.75 percentage points in a bid to tackle high inflation.

Wall Street investors have been looking for signs that the magnitude of future rate hikes may be smaller as inflation cools, Fed Chairman Jerome Powell reiterated last week that he was ” determined” to bring inflation down.

The European Central Bank announced its own significant rate hike last week, which helped cool the recent rise in the US dollar.

“We see the relief in equity prices and the recent broad dollar correction continuing into the week as markets eye a near-term peak in central bank policy and positioning is relatively defensive,” said Citi strategist Ebrahim Rahbari in a note to clients.

This week, investors are eagerly awaiting the August Consumer Price Index report, which is expected to be released on Tuesday. The report is one of the last inflation data the Fed will see before its September meeting. Retail sales and industrial production reports will be released on Thursday.

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