US stocks finished higher ahead of key CPI data

As investors raised positions in anticipation of Thursday’s US inflation report, US stocks ended the day higher on Monday, making up ground lost during the previous week. Due to concerns over deteriorating economic data, inconsistent results, and rising Treasury yields, the major stock indices closed last week lower as investors booked profits following months of gains.

The benchmark S&P 500 increased 17.7% this year, propelled by anticipation of a gentle landing for the world’s largest economy and confidence surrounding artificial intelligence. To reach 35,473.13, the Dow Jones Industrial Average gained 407.51 points, the most in a single day since June 15. The Nasdaq Composite rose 85.16 points to 13,994.40 while the S&P 500 rose 40.41 points to 4,518.44. The tech-heavy Nasdaq snapped a four-session losing streak, matching its longest negative run this year.

The Nasdaq also finished lower for four straight days at the start of May. The S&P 500 also snapped a four-session losing run.

Most of the S&P’s major indexes rose, led by gains of 1.9% in communication services and 1.4% in financials. Overall, second-quarter earnings have been better than expected so far, with 79.1% of the 422 S&P 500 companies reporting as of Friday beating analysts’ estimates.

Berkshire Hathaway rose 3.4% to a record high, while Tyson Foods slid 3.8% after the meat packer disappointed Wall Street expectations for third-quarter revenue.

Vaccine makers BioNTech SE and Moderna Inc slumped 7.5% and 6.5%, respectively, due to a plunge in pandemic-related demand and investment bank Leerink cutting its price target for the company. Sage Therapeutics suffered its biggest one-day decline since December 2019, dropping 53.6%, with its partner on the drug, Biogen, recovering to trade 0.9% higher.