Stocks rose slightly on Monday, following the S&P 500’s third straight weekly gain, as investors focused on a key inflation report this week and struggles for the semiconductor industry.
The Dow Jones Industrial Average gained 75 points or 0.2%. The S&P 500 and Nasdaq Composite advanced 0.1% and 0.2%, respectively. The gains came despite Nvidia reporting weak second-quarter earnings, putting pressure on semiconductor stocks.
Monday’s moves follow a weekly gain for the S&P 500 and Nasdaq Composite as a surprisingly strong monthly jobs report eased some recession fears. The resilient labor market also signaled that the economy could withstand more rate hikes from the Federal Reserve.
“The stock market’s rally from the June 16 low appears to have legs in our view based on the economic data and earnings results reported through last Friday,” said Oppenheimer chief investment strategist John Stoltzfus, in a note to clients.
Some clean energy-related stocks gained after the Senate passed a $430 billion climate bill, the Inflation Reduction Act, which is expected to pass the House later this year week The Invesco Solar ETF rose 4% in early trade.
A new consumer price index reading due on Wednesday will give investors more clarity on the central bank’s next move at its September policy meeting. Traders are now pricing in a higher probability of a 0.75 percentage point increase next month, which would be the third consecutive increase of this magnitude.
According to Dow Jones estimates, the global CPI, which includes energy and food, is expected to fall to 8.7% in July, from a 40-year high of 9.1% in June.