The S&P 500 climbed 1%, while the Dow Jones Industrial Average jumped 230 points, or 0.7%. The tech-heavy Nasdaq Composite led the way, rising 1.3%. The moves build on a recent rally that helped all three major averages record weekly gains for the first time in three weeks on Friday. The S&P 500 and Nasdaq each rose more than 4% during the holiday-shortened week, while the Dow rose 3.2%. In commodities, oil prices edged higher, extending a streak of recent bullish action. West Texas Intermediate (WTI) futures were up about 1.3% at $87.91 a barrel and Brent crude was up 1.4% at $94.13 a barrel. All eyes are on August’s Consumer Price Index (CPI) which is expected to be released before markets open on Tuesday. Economists polled by Bloomberg had expected the headline CPI to rise 8.1% from a year earlier in August, compared with an 8.5% rise in July. On a monthly basis, the CPI is expected to fall 0.1% from July to August, mainly due to the continued easing of energy prices. If held, it would mark the first monthly decline since May 2020. The core CPI, which strips out the volatile food and energy components of the report and is closely watched by the Fed, is likely to rise in August, rising 6.1% from the same month last year, more than 5 .9% year-on-year – an annual increase seen in July. The reading will likely confirm to investors whether the Federal Reserve will raise interest rates by 0.50% or 0.75% at its policy meeting later this month. In recent weeks, Fed policymakers have doubled down on the US central bank’s commitment to tightening monetary policy for as long as necessary to restore price stability. Federal Reserve Governor Chris Waller told a conference in Vienna, Austria on Friday that he supports a “significant” increase in the benchmark interest rate at the Fed’s Sept. 20-21 meeting. The story continues Morning traffic along Constitution Avenue passes the US Federal Reserve in Washington, DC on August 18, 2022. – US central bankers remain committed to raising interest rates further to suppress rising prices, but agreed that it would be appropriate to slow the pace of increases “at some point,” the Federal Reserve said on August 17. (Photo by MANDEL NGAN/AFP) (Photo by MANDEL NGAN/AFP via Getty Images) “I expect it will take some time for inflation to return to the 2 percent target and for the FOMC to tighten policy until 2023,” Waller said. “The policy rate would need to move significantly above this neutral level to further constrain aggregate demand and put more downward pressure on prices.” CME Group’s Fedwatch tool puts the likelihood of a three-quarter rate hike at 90%, up from 69% two weeks ago. A list of Wall Street institutions have also raised their bets to a 75 basis point increase this month, including Bank of America, Goldman Sachs and Nomura. In other markets, Twitter ( TWTR ) was in the spotlight after the social media platform responded to a letter from Elon Musk on Sept. 9 that said the company intends to enforce Musk’s takeover offer and asked him and his team to comply under the terms of the agreement. Shares fell 1.7%. Disney ( DIS ) was also closely watched Monday after activist investor Dan Loeb apparently backed away from his recent push to sell or spin off ESPN. Loeb’s hedge fund, Third Point Management, said in August that it had bought a $1 billion stake in Disney. Shares gained about 1% on Monday. “We better understand ESPN’s potential as a standalone business and another branch for Disney to reach a global audience to generate advertising and subscriber revenue,” Loeb said in a tweet Sunday after Disney CEO Bob Chapek pledged to ” restore ESPN to its growth. orbit.” Shares of Occidental Petroleum Corporation ( OXY ) rose 1.9% on Monday, after a filing with the Securities and Exchange Commission on Friday evening showed that Warren Buffett’s Berkshire Hathaway increased its stake in the oil group to 26.8%. Berkshire recently won regulatory approval to buy up to a 50% stake in OXY. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest Yahoo Finance platform stock trends Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
