Nasdaq Surges on AI Optimism, Investors Await Inflation Data
The Nasdaq Composite closed sharply higher on Monday as investors bet on artificial intelligence and awaited inflation data due later this week.
Tesla (TSLA) led the way, rallying 10% after Morgan Stanley upgraded the electric car maker to “overweight” from “equal-weight.” Other megacaps also rose, with Amazon (AMZN) climbing 3.5% and Microsoft (MSFT) adding 1.1%.
Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes. That will be followed by producer price data on Thursday.
Analysts expect the CPI data to show that inflation moderated slightly in August, but still remains stubbornly high. If the data comes in as expected, it could provide some relief to investors who are worried about the Fed’s aggressive monetary tightening.
In other news, Qualcomm (QCOM) advanced 3.9% after the chipmaker signed a new deal with Apple (AAPL) to supply 5G chips to the iPhone maker until at least 2026. Hostess Brands (TWNK) surged 19.1% after J. M. Smucker (SJM) said it would buy the Twinkies-maker in a $5.6 billion deal.
Overall, the Nasdaq Composite gained 1.14%, the S&P 500 rose 0.67%, and the Dow Jones Industrial Average added 0.25%.
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