The Nasdaq jumped to a closing record high Monday powered by chip stocks as investors awaited key inflation data due later this week.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average rose 114 points, or 0.3%, while the S&P 500 gained 0.2% and the NASDAQ Composite climbed 0.5% closing at a record of 21,798.70.
Chipmakers shine;
Chip stocks including NVIDIA Corporation (NASDAQ:NVDA) and Broadcom Inc (NASDAQ:AVGO) led the move higher, with latter continued to add gains following its solid quarterly earnings last week and bullish AI-outlook.
"Amid high expectations, AI demand commentary on the call was bullish and management’s out-year growth framework supports our view that C2026 EPS is tracking towards ~$10 with ~$11.5 likely in C2027," UBS said in a recent note following Broadcom’s results last week.
Elsewhere in tech, Alibaba Group Holdings Ltd ADR (NYSE:BABA) led a $100 million funding round for Chinese humanoid startup X Square Robot, sending the e-commerce giant’s shares up more than 4%.
August CPI awaited for more cues
The focus this week is squarely on consumer price index inflation data for August.
The print is expected to reflect some of the inflationary effects of Trump’s tariffs, given that a bulk of them took effect last month. Trump’s tariffs are expected to be borne by U.S. importers – a trend that could underpin local inflation.
Due out on Thursday, the data from the Labor Department’s Bureau of Labor Statistics is anticipated to show that prices grew at a rate of 2.9% in August, accelerating slightly from 2.7% in July.
Producer price index inflation data is also due this week.
While the inflation data is unlikely to factor into the Fed’s September rate decision, it is likely to affect the Fed’s stance towards future easing. The central bank has repeatedly warned that inflationary risks from Trump’s tariffs could delay future rate cuts.
French government collapses again; Japanese politics in spotlight
The French government has collapsed for a second time in less than a year after Prime Minister Francois Bayrou suffered a defeat in a confidence vote.
President Emmanuel Macron will now have to decide whether to call another snap election or pick a new prime minister at time when massive France’s debt pile is stoking concern.
French bond yields have been surging to multi-decade highs recently, with the 30-year bond yield recently hitting 4.5%, the highest since 2011.
In Japan, meanwhile, Japan’s Prime Minister Shigeru Ishiba will step down as the leader of the Liberal Democratic Party, just weeks after its ruling coalition suffered a crushing defeat in the upper house elections.
Ishiba signaled that his resignation was also after Tokyo had secured a trade deal with the U.S., which will entail relatively lower tariffs on Japanese goods.
But his abrupt resignation now opens the door to a potential leadership struggle in the world’s fourth-largest economy, especially after the LDP lost its majority in the upper house.
Source :
https://www.investing.com/news/stock-market-news/us-stock-futures-drift-higher-amid-rate-cut-bets-economic-jitters-4228013
