US stocks soared Monday as investors’ optimism grew about a soft landing following Friday’s monthly jobs report.
In December, payrolls expanded more than expected while wage growth surged less than expected, suggesting the Federal Reserve’s policy tightening is finally slowing the economy enough to tame inflation and dodge a recession.
On Thursday, the consumer price index report is due, providing another key indicator on the direction of inflation.
Here’s where US indexes stood as the market opened at 9:30 a.m. on Monday:
- S&P 500: 3,920.10, up 0.64%
- Dow Jones Industrial Average: 33,796.38, up 0.49% (165.77 points)
- Nasdaq Composite: 10,680.30, up 1.05%
But analysts have cautioned that markets will see fluctuations in the near term as the central bank continues to respond to economic data.
“The market’s day-to-day swings last week may symbolize a larger, longer-term tug-of-war that could play out this year,” according to Chris Larkin, managing director of trading at E-Trade from Morgan Stanley. “In addition to the probability of interest rates remaining high and a possible economic slowdown, any bullishness triggered by slowing inflation may be offset by stocks still-high valuations and overly optimistic earnings expectations.”
