US stocks rose for the fourth straight trading day, led by Apple, up almost 4% on Monday. The iPhone maker's iPhone 14 is in strong demand in China, according to a Shenzhen merchant. The broad market rally was also boosted by an expectation that the US inflation may cool further in August one day ahead of the CPI data release. Investors seem to have digested another 75 basis points by the Fed later this month, with the probability rising to above 90%, according to the CME FedWatch Tool. The US dollar dropped further, lifting commodity prices, including oil and gold.
- Dow up 0.72%, S&P 500 rose 1.06%, and Nasdaq advanced 1.27%. All 11 sectors in the S&P 500 finished higher, with consumer discretionary, technology, and energy stocks leading gains. Major oil producers all rose due to a comeback in oil prices. Devon Energy jumped 4%.
- NIO (NYSE: NIO) shares surged 13.8% in the US markets, jumping for the third straight trading day after the Chinese EV maker reported that it had topped analyst’s estimates for car deliveries in the second quarter, despite a wider-than-expected loss, but a positive outlook for the second half.
- European markets started the week on a front foot as investors cheered for the recent drop in gas prices, ahead of the US key inflation data. EU Stoxx 50 was up 2.14%, FTSE 100 rose 1.66%, DAX jumped 2.40%, and CAC 40 climbed 1 95%.
- Futures are pointing to a jump in Asian stock markets amid broad optimism. ASX futures were up 0.66%. Nikkei225 futures were up 0.35%, and CSI 300 rose 1.46%. Both China’s M2 money supply and new loans rose in August, which is a positive sign for the country’s economic recovery.
- US dollar index fell for the fifth consecutive trading day as markets are betting for a peak of the Fed’s hawkishness, with an expectation that the US inflation may cool further. Commodity currencies, including AUD, NZD, and CAD rebounded sharply against the greenback on risk-on sentiment.
- Both crude oil and gold rose due to a softened USD. Oil prices reversed the losses early last week. The news that the US and its European allies will impose a price cap by banning cargo ships from December tends to boost Russian oil shipments in the near term. NYMEX WTI futures rose 1.14%, to $87.78 per barrel. ICE Brent futures were up 1.50%, to $94.23 per barrel. COMEX gold futures climbed 0.69%, to $1,740.60 per ounce.
- Bitcoin topped 22,000 for the first time since last August. Cryptocurrencies followed the recent market’s optimism, with both Bitcoin and Ethereum jumping since last Friday. Bitcoin rebounded 21% to above $22,400 from a two-year low of 18,500 seen on 7 September.