The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.21%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.25%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.46%. September E-mini S&P futures (ESU25) rose +0.25%, and September E-mini Nasdaq futures (NQU25) rose up +0.49%.
Stocks settled higher on Monday on the prospect of a more accommodative Federal Reserve. The 10-year T-note yield fell to a 5-month low on Monday of 4.04%. The markets have fully priced in a 25 bp rate cut by the Fed at next week's FOMC meeting and priced in a 10% chance for a 50 bp rate cut. Strength in semiconductor makers led technology stocks and the overall market higher. However, this week's US Aug CPI and PPI reports will show how much room the Fed has to cut interest rates and support the job market.
