Wall Street indexes bounce back as investors await inflation data, Fed rate cuts

Wall Street indexes bounce back as investors await inflation data, Fed rate cuts

By Sinéad Carew and Shubham Batra

Mon September 9, 2024 4:33 PM

After last week’s rout, investors concluded that the panic was an overreaction and with the weekend’s pause decided today that there were good quality stocks now available at bargain prices. All the indexes saw big boosts that reached their heights about 1 pm, the Dow up some 650 points, before declining to close at still very healthy 3-digit gains. CPI is coming Wednesday and PPI on Thursday, all of which will hotly anticipate whether next week’s rate cut announcement will be for ¼ point or ½ point. 

But investors are very much torn between the two scenarios, expecting disappointment if it’s only ¼ point but recessionary fears if it’s ½ point.  Thus, they’re expecting a negative reaction no matter what the decision is. As today’s expert put it, “It’s a lose-lose situation.”  Wednesday’s report is expected to show 2.6% inflation. Volume came in slightly above recent averages at 10.75 billion. 

DJ: 40,345.41  -410.34      NAS: 16,690.83  -436.83      S&P: 5,408.42  -94.99        9/6

DJ: 40,829.59  +484.18     NAS: 16,884.60  +193.77     S&P: 5,471.05  +62.63       9/9

Mon 9-9-24 :33 pm Wall Street indexes bounce back as investors await inflation data, Fed rate cuts | Reuters