US stocks rally as markets gear up for inflation data
Wall Street stocks advanced on Monday as investors focused on corporate earnings and looked ahead to US inflation data due later in the week. The Dow Jones surged 1.2 percent to 35,473, while the S&P 500 climbed 0.9 percent to 4,518. The Nasdaq picked up by 0.6 percent to 13,994. Markets retreated on Friday following mixed official employment figures that showed an easing but still tight labour market – suggesting the Federal Reserve could continue keeping interest rates high to cool the economy. The earlier pullback was "healthy for the market," said Peter Cardillo of Spartan Capital. "Investors are now concentrating on the earnings," he added. He noted that the market might maintain its upward trend but experience some volatility ahead of an annual central banking symposium in Jackson Hole, Wyoming, in the later part of August. Among individual companies, Berkshire Hathaway shares surged 3.6 percent after the conglomerate posted a strong earnings report. Looking ahead, investors are eyeing key inflation data due on Thursday morning, expected to weigh on the Fed's next interest rate decision in September. Analysts predict the annual inflation rate could come in at 3.3 percent, a moderate figure marking a slight rise from June's number. (AFP)