US: Stocks rally as markets gear for inflation data

WALL Street stocks advanced on Monday as investors focused on corporate earnings and looked ahead to US inflation data due later in the week.

The Dow Jones Industrial Average surged 1.2 per cent to 35,473.13, while the broad-based S&P 500 climbed 0.9 per cent to 4,518.44.

The tech-heavy Nasdaq Composite Index picked up by 0.6 per cent to 13,994.40.

Markets retreated on Friday following mixed official employment figures that showed an easing but still tight labour market – suggesting the Federal Reserve could continue keeping interest rates high to cool the economy.

The earlier pullback was “healthy for the market,” said Peter Cardillo of Spartan Capital.

“Investors are now concentrating on the earnings,” he added.

He noted that the market might maintain its upward trend but experience some volatility ahead of an annual central banking symposium in Jackson Hole, Wyoming, in the later part of August.

Among individual companies, Berkshire Hathaway shares surged 3.6 per cent after the conglomerate posted a strong earnings report.

Looking ahead, investors are eyeing key inflation data due on Thursday morning, expected to weigh on the Fed’s next interest rate decision in September.

SEE ALSO

US: Wall Street kicks off week higher; inflation in focus

Analysts predict the annual inflation rate could come in at 3.3 per cent, a moderate figure marking a slight rise from June’s number. AFP