The gains extended Friday’s uptick on increased optimism that the US Federal Reserve could cut interest rates next month.
The Dow Jones rose 119.52 points to 46,364.93 (0.26%), the S&P 500 gained 65.78 points to 6,668.77 (1.00%), and the Nasdaq advanced 369.97 points to 22,643.06 (1.66%).
Federal Reserve Governor Christopher Waller told Fox Business that he is advocating for a rate cut at the US central bank’s upcoming meeting in December.
He expects inflation — bolstered by President Donald Trump’s tariffs — to pull back eventually, but expressed worry about a “still weak” labor market.
He added it was “not a good sign” that much of hiring has been concentrated in the leisure and hospitality and health care industries.
This week’s calendar includes releases of retail sales and inflation pricing data delayed by the US government shutdown.
CFRA Research’s Sam Stovall expects light trading volume with markets closed for Thursday’s Thanksgiving holiday, followed by a half-session on Friday.
Stovall described the market’s trajectory as “a short-term recovery with investors expected to re-evaluate when they come back in earnest.”