US Stocks Close Higher To Start New Week

NEW YORK, Sept 10 (Bernama-Xinhua) -- US stocks ended higher on Monday, as investors took advantage of lower prices after Wall Street experienced its worst week of the year, reported Xinhua.

The Dow Jones Industrial Average rose 484.18 points, or 1.20 per cent, to end at 40,829.59. The S&P 500 added 62.63 points, or 1.16 per cent, to end at 5,471.05. The Nasdaq Composite Index increased 193.77 points, or 1.16 per cent, and closed at 16,884.6.

All of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and industrials leading the gainers by adding 1.63 per cent and 1.56 per cent, respectively. Communication services posted the weakest growth, up by 0.04 per cent. Nvidia, Tesla, and Amazon led gains among the megacaps.

"I do think you have a little short-term bounce here. We were a little bit oversold last week. However, the markets are very focused on how the economy is going to be now, rather than what inflation is going to do and what the economy is going to do," said Sarat Sethi, managing partner at Douglas C. Lane & Associates.

As the Federal Open Market Committee (FOMC) backout started, fixed income markets priced in a potential reduction in the federal funds rate ranging from 0.75 per cent to 1.5 per cent by December 2024, according to the Chicago Mercantile Exchange (CME) Group's FedWatch Tool.

However, BlackRock's Jeffrey Rosenberg warned that a 50-base-point FOMC rate cut in September might signal worries, not confidence, since it might signal that the FOMC has worries over the state of the economy.

In corporate news, Apple's annual product launch on Monday initially failed to win over investors, with shares of the world's largest company slipping during the event, which centered around previously introduced artificial intelligence features for iPhones. However, the stock later recovered, closing with a modest gain of 0.041 per cent.  

-- BERNAMA-XINHUA