All three major US stock indices increased by 1.2% on September 9 after a significant decline in the market recently, Report informs referring to Interfax.
The Dow Jones fell by 2.5% last week, the S&P 500 - by almost 4%, which was the worst result since March 2023 for both indicators. The weekly decline of the Nasdaq was 5.6%. This week, data on the dynamics of consumer prices and producer prices in the US, which will be published on September 11 and 12, respectively, will be important for the market.
Analysts surveyed by Trading Economics predict that inflation in August slowed to 2.6% year-on-year from 2.9% a month earlier. Producer prices are expected to have risen by 1.8% after increasing by 2.2% in July. The data could influence the Federal Reserve's decision on the extent of the interest rate cut at its next meeting, scheduled for September 17-18. Traders are currently pricing in about a 75% chance that the Fed will cut the benchmark rate by 25 basis points at this meeting. The chance of a 50-basis-point cut is about 25%. Boeing Co. shares rose 3.4% on September 9.
The aircraft manufacturer has preliminarily agreed to the terms of a new labor contract with two local chapters of the International Association of Machinists and Aerospace Workers, representing more than 33,000 employees. If ratified, the four-year agreement would increase base pay for workers in Washington, Oregon, and California by the largest increase in the company's history by 25%. Each worker would also receive a one-time payment of $3,000. Palantir Technologies and Dell Technologies will be included in the S&P 500 starting September 23.
On this news, the price of Palantir soared by more than 14%, Dell - by 3.8%. In addition, shares of Amazon.com Inc. rose by 2.3%, Alphabet Inc. - by 1%, Nvidia Corp. - by 2.9%, Meta (recognized in the Russian Federation as an extremist organization, its activities in the country are prohibited) - by 1.6%, Intel Corp. and Microsoft Corp. - by 1%, International Business Machines - by 1.4%. At the same time, the price of Merck & Co. shares fell by more than 2%.
Rival pharmaceutical company Summit Therapeutics announced over the weekend that its anti-cancer drug outperformed a similar drug Keytruda produced by Merck in a head-to-head study, MarketWatch reports. Summit Therapeutics shares soared in price by 56%, demonstrating the most significant increase among companies included in the Nasdaq index.
The Dow Jones Industrial Average rose 484.18 points (1.2%) to 40,829.59 on September 9. The top gainers among the index components were Verizon Communications, which rose 3.8%, and Boeing. The Standard & Poor's 500 rose 62.63 points (1.16%) to 5,471.05. The most significant gains were in Super Micro Computer Inc. and United Airlines Holdings, which rose 6.1% and 6%, respectively. The Nasdaq Composite Index rose 193.77 points (1.16%) in a day and closed the session at 16,884.6.