Stocks on Wall Street rebounded from the lows of the day as investors digested a barrage of reports on the economy, labor market and international trade. Crude oil gained after OPEC+ agreed to cut larger-than-expected production.
Major averages on Wall Street declined after surging for two days in a row. Bond yields rose. UK Prime Minister Truss doubled down on tax and borrow policy, putting more pressure on the pound.
The S&P 500 and the Nasdaq soared more than 3% after investors stepped up and increased stock exposure. Markets in Europe jumped nearly 4% and commodities advanced.
In a broad rally, stocks in all industrial sectors gained. Energy sector jumped nearly 4% and resource, financial services and consumer discretionary sectors jumped more than 3%.
Stocks rebounded from the losses in the previous week, month and quarter. Crude oil jumped 5% on the hopes of a supply cut announcement at the next OPEC+ meeting on Wednesday.
Stocks extended losses to the third quarter in a row after major averages fell on the last day of the week, the month, and the quarter. With inflation showing no signs of easing, rate hikes are likely to continue.
Carnival Corp struggled with business recovery and rising operating costs and large debt repayment loomed. Rent-A-Center lowered its quarterly outlook. Micron Technology guided 25% gross margin in the fiscal first quarter.
Major averages struggled to bounce back after the latest PCE report showed elevated inflation and a difficult task ahead for the Fed. Inflation accelerated for the fifth month in a row in the eurozone to 10.0%.
On Wall Street anxieties spiked up after the latest jobs data signaled wage and consumer price inflation may stay elevated longer than previously estimated. Major averages are set to close down at least 8% in September.
Vail Resorts guided strong demand for its ski resorts. Worthington Industries plans to split its businesses. Rite Aid lowered its annual outlook. CarMax confirmed softening demand. Miller Knoll focuses on lowering costs and improving cash flow.
European markets accelerated declines after the stronger-than-expected U.S. jobs report added to market anxieties underpinned by record German consumer inflation and record wholesale inflation in Italy.
Major averages dropped between 2% and 3% after the latest jobs report highlighted labor market strength, stoking fears of higher rates sooner. Commodities turned lower after the release of jobs data.
