Wall Street stocks jumped on Monday, as positive China data and comments from Treasury Secretary Janet Yellen raised hopes for the health of the world’s two largest economies.
The S&P 500 (^GSPC) rose 0.7%, while the Dow Jones Industrial Average (^DJI) emerged around 0.3%. The tech-heavy Nasdaq Composite (^IXIC) was up more than 1% amid strong gains for Tesla (TSLA) after Morgan Stanley’s update.
The three major gauges were looking to shake off a lost week that saw tech stocks stumble as Apple ( AAPL ) suffered a two-day decline, though the iPhone maker’s stock continued to recover ahead of Tuesday’s much-anticipated decline event.
Another positive was Tesla shares, which rose 10 percent. Analysts at Morgan Stanley estimate EV maker Dojo’s rapid adoption of its supercomputer robotaxis and networking services could add as much as $500 billion to the company’s market value.
This week, attention also turned to consumer inflation data due out on Wednesday, a key input for investors trying to gauge whether the Federal Reserve will ease interest rate hikes at its September meeting.
Yellen said on Sunday that she was “feeling very good” about the prospect of the US avoiding a recession while tightening consumer price hikes, a key factor in the Fed’s debate.
Meanwhile, fresh China inflation data and other data raised hopes that Asia’s powerhouse economy may finally be improving after struggling to recover after falling on investors.
Elsewhere in Asia, Governor Kazuo Ueda said the Bank of Japan could end negative interest rates once its 2 percent inflation target is met. This signals the possibility of an interest rate hike at the central bank, which has long stuck with very loose policy.
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