U.S. stocks increased on Monday as Wall Street nears record highs after an extremely turbulent summer.
For the eighth straight day, the S&P 500 increased by 1 per cent amounting to 54.00 points, and the overall index closed at 5,608.25. Following the index's best week of the year, that resulted in its longest winning streak since November. After dropping nearly 10 per cent below the mark earlier this month, it is now back within 1 per cent of its all-time high.
The Nasdaq composite saw gains of 1.4 per cent amounting to a surge of 245.05, which led the index to close at 17,876.77 points, and the Dow Jones Industrial Average surged 236 points, eventually shuttering at 40,896.53 points.
The tech-heavy Nasdaq, which took support from giants of the magnificent seven pack, including Nvidia, Microsoft, and the biggest search engine, Google's parent company, Alphabet, helped all three of the major U.S. stock indexes close higher.
Following a sharp sell-off two weeks ago prompted by recession fears, stocks continued to rise, and the S&P 500 and the Nasdaq extended their winning streak to their eighth straight trading session, the longest since 2024.
The U.S. stock market saw its largest weekly gains of the year, with the three major indexes rising between 2.9 per cent and 5.3 per cent, during the rally.
Rising expectations of rate cut
Consumer resilience in the face of an economic slowdown has been demonstrated by recent data, which has raised expectations that the Federal Reserve will begin cutting interest rates at its September policy meeting by reducing the Fed funds target rate by 25 basis points.
The Fed Chairman's remarks on Friday will be scrutinised for hints about the U.S. central bank's path from restrictive to neutral monetary policy. The Jackson Hole Economic Symposium begins on Thursday.
The Nasdaq Composite recorded 105 new highs and 65 new lows, while the S&P 500 recorded 32 new 52-week highs and no new lows.
