Investing.com — It rose sharply Monday, recovering from its biggest weekly slump since 2023, as investors digested Apple’s new offering of AI-powered iPhones and looked ahead to this week’s inflation data.
At 4:00 PM EST (2000 GMT), the 30 stocks gained 484 points, or 1.2%, the benchmark S&P 500 rose 1.2% and tech-heavy stocks gained 1.2%.
“We don’t think the rally is being driven by specific news reports since Friday[day] close, but instead a (modest) dip buy, largely driven by oversold conditions and anticipation of monetary support,” Vital Knowledge analysts said in a note to clients.
Apple flattens after latest iPhone, AI software revealed
Apple Inc (NASDAQ:) closed almost flat and struggled to join the tech rally even as the tech giant unveiled its new iPhone models and showcased its generative artificial intelligence software, Apple Intelligence.
Apple’s iPhone 16 is expected to start at $799, with $899 for the 16 plus model. The tech giant also confirmed that Apple Intelligence would launch in October.
Apple also announced its new, redesigned Watch Series 10 and Airpods 4.
The product event was closely watched to see if there were any signs that Apple’s foray into AI could trigger another upgrade cycle for the iPhone.
Inflation data available as expected Fed rate cut in focus
Inflation data, including the consumer price index and producer price index for August, are expected to be released on Wednesday and Thursday, respectively.
The duo of inflation updates are the latest high-level economic data ahead of the Fed meeting on September 18.
UBS said it sees the risk of an upside surprise in core CPI for August, especially if hospital prices rebound.
Still, with the labor market driving monetary policy and after last week’s weaker nonfarm payrolls report, many expect the Fed to make cuts at its meeting next week.
Investors’ bets that the Fed will cut rates by 25 basis points stood at 73% as of Monday morning, according to CME Group’s (NASDAQ:) closely watched FedWatch Tool.
Meanwhile, the probability of a 50 basis point cut stood at 27%, after a brief jump above 50% in the immediate aftermath of the jobs data.
Boeing shares rise after preliminary union agreement; Palantir and Dell want to join the S&P 500
Shares of Boeing (NYSE:) rose more than 3% after tentatively agreeing to a 25% pay increase for its largest union, potentially averting a damaging strike that threatens to pile further pressure on the embattled planemaker.
In addition to the wage increase, the proposed four-year deal would also include a commitment to build a new aircraft in the US Pacific Northwest, better pension benefits and greater union contributions to aircraft quality.
Palantir Technologies Inc (NYSE:) and Dell Technologies Inc (NYSE:) rallied on Monday after S&P Global announced on Friday that both stocks would join the S&P 500 before the September 23 open, replacing American Airlines (NASDAQ:) and Etsy (NASDAQ:) in the index.
Crypto stocks are driving Bitcoin higher
Shares in crypto-related stocks such as digital currency exchange Coinbase (NASDAQ:) and crypto miners Cleanspark (NASDAQ:) and Marathon Digital (NASDAQ:) advanced.
The price of , the world’s best-known digital token, rose on Monday, pushing it higher for the third day in a row.
(Scott Kanowsky, Reuters contributed to this report.)
