Market Update

S&P 500 Full Recovery
Investing.com — The S&P 500 jumped on Monday, rebounding from its biggest weekly slump since 2023. Investors are digesting Apple’s new lineup of AI-enhanced iPhones and looking ahead to inflation data this week.

At 4:00 p.m. EST (2000 GMT), the 30-stock Dow Jones Industrial Average gained 484 points (1.2%), the benchmark S&P 500 rose 1.2%, and the tech-heavy Nasdaq Composite also gained 1.2%.

Analysts at Vital Knowledge remarked, “We don’t think the rally is being spurred by any specific news items out since the Friday close but instead some (modest) dip buying driven in large part by oversold conditions and monetary support anticipation.”

Apple Flat After Latest iPhone and AI Software Unveil

Apple Inc (NASDAQ:AAPL) closed about flat, struggling to join the tech rally despite unveiling new iPhone models and generative AI software, Apple Intelligence.
The new iPhone 16 starts at $799, with the 16 Plus model priced at $899. Apple Intelligence is expected to launch in October alongside the redesigned Watch Series 10 and AirPods 4. The product event was closely watched for signs that Apple’s foray into AI could ignite a new upgrade cycle for the iPhone.

Inflation Data on Tap as Fed Rate Cuts Loom

Inflation data, including the consumer price index (CPI) and producer price index (PPI) for August, will be released on Wednesday and Thursday.
This inflation update is the last major economic data point before the Fed meeting on September 18. UBS warns of an upside surprise in the core CPI, especially if hospital prices bounce back. Following last week’s weaker nonfarm payrolls report, many expect the Fed to cut rates at its meeting. Monday morning, the CME Group’s FedWatch Tool indicated a 73% chance of a 25-basis point cut and a 27% chance for a 50-basis point cut.

Boeing Shares Rise After Union Agreement; Palantir & Dell to Join S&P 500

Shares of Boeing (NYSE:BA) increased by more than 3% after a tentative agreement for a 25% pay increase for its largest union, potentially avoiding a damaging strike. The four-year deal includes a new plane commitment in the U.S. Pacific Northwest and improved retirement benefits.

Palantir Technologies Inc (NYSE:PLTR) and Dell Technologies Inc (NYSE:DELL) also rallied after S&P Global announced they would replace American Airlines (NASDAQ:AAL) and Etsy (NASDAQ:ETSY) in the S&P 500 starting September 23.

Crypto Stocks Ride Bitcoin Surge

Shares in crypto-related companies such as Coinbase (NASDAQ:COIN), Cleanspark (NASDAQ:CLSK), and Marathon Digital (NASDAQ:MARA) rose following a surge in Bitcoin prices, which increased for a third consecutive day.

(Scott Kanowsky, Reuters contributed to this report.)