The Dow Jones Industrial Average rose 599.1 points, or 1.8%, to 33,544.34, while the S&P 500 gained 89.34 points, or 2.1%, to 4,262.45. The Nasdaq Composite added 367.40 points, or 2.9%, to 12,948.62.
Attention turned to the upcoming Federal Reserve monetary policy announcement. In addition, Brent crude oil closed below 100 dollars a barrelafter rising to over $139 last week, which was a relief for equity investors, who have seen stocks come under pressure this year on rising inflation concerns and uncertainty about the path of the Fed’s monetary policy.
US producer prices rose sharply in February, due to a rise in gasoline, and further increases are expected after the Russian invasion of Ukraine, which has made crude oil and other raw materials more expensive.
Still, data for the 12 months to February matched expectations for a 10% increase, while the producer price index for final demand in monthly terms increased by 0.8%, just below the estimate of 0.9% and less than the 1.2% increase in January.
The market is pricing in a rate hike of at least 25 basis points when the central bank delivers its monetary policy statement on Wednesday. Investors will also keep a close eye on the Fed’s forecast for the path of rates this year and beyond to curb inflation.
The chairman of the Fed, Jerome Powell, has recently raised multiple rate hikes this year.
The S&P 500 had slumped 2.4% in the previous three sessions and recently joined the Dow.the Nasdaq and the Russell 2000 in the formation of a “death cross” technical pattern, when a short-term moving average crosses below a long-term one, which some investors believe indicates further short-term weakness term.
Source: Ambito
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