S&P 500 and Nasdaq rise for 8th straight session as recovery rally continues: Live updates

Stocks advanced on Monday, building on the market’s comeback as investors readied for the closely watched Federal Reserve symposium later this week.

The Dow Jones Industrial Average added 165 points, or 0.4%. The S&P 500 and Nasdaq Composite rose 0.6% and 0.7%, respectively, placing both on track to notch their eighth straight winning day.

Stocks are coming off a winning week, the latest turn amid a volatile stretch for equities. Notably, the broad S&P 500 rallied nearly 4% for its best week since 2023, while the Nasdaq jumped more than 5% as tech stocks led the rebound.

August had a turbulent start after disappointing data fueled recession fears and bolstered concerns that the Federal Reserve was behind the curve on lowering interest rates. Those worries sparked a global sell-off, pushing the S&P 500 on Aug. 5 to record its worst day since 2022.

But fresh data last week seemed to subdue an anxious market and boost hopes that the economy can attain a soft landing scenario. Investors saw good stats on retail sales and initial jobless claims, in addition to strong earnings from Walmart. On top of that, the annualized inflation rate measured in July’s consumer price index touched its lowest level in more than three years.

“The market has almost fully recovered from the overblown recession fears earlier this month,” said Greg Marcus, managing director of UBS Private Wealth Management. But, “we expect volatility to remain high for the rest of the year.”

“While we do remain generally bullish, we don’t see a straight line up in the market,” Marcus said. “The economy is slowing and there will likely be a mix of conflicting economic data points over the coming months, which is set to continue this recessionary debate.”

Now, investors are hoping for insights into the path of interest rates amid mounting hopes for a forthcoming cut. They’ll monitor Fed Chair Jerome Powell’s Friday speech at the central bank’s symposium in Jackson Hole, Wyoming. Before then, traders will parse minutes from the Fed’s most recent meeting due on Wednesday.

The Democratic National Convention also kicks off Monday.