Stocks rose Monday as market participants gear up for a busy week of inflation data ahead of the Federal Reserve's policy meeting later this month. The Dow Jones Industrial Average climbed more than 80 points, while the S&P 500 and Nasdaq Composite added 0.7% and 1.15%, respectively.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): +0.67% or +29.97 points to 4,487.46
Dow Jones Industrial Average (NYSE: DIA): +0.25% or +87.13 points to 34,663.72
Nasdaq Composite Index (NASDAQ: QQQ): +1.14% or +156.37 points to 13,917.89
Driving much of the session's bullish sentiment, The Wall Street Journal reported over the weekend that the consensus amongst policymakers it to hold the central bank's benchmark interest rate at their current levels at next week's meeting. The WSJ also reported that the Fed is softening its stance towards another rate hike this year, as inflation data continues to improve in response to high interest rates.
Still, market participants are currently pricing in a nearly 45% the central bank will raise interest rates at its November meeting, according to CME Group's FedWatch tool.
JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon said Monday that it would be a "huge mistake" to believe the current U.S. economy's strength will last for years, as risk including central banks tightening their liquidity programs, the Ukraine war, and increased global government spending threatens the healthy consumer balance sheets and rising wages supporting growth.
"To say the consumer is strong today, meaning you are going to have a booming environment for years, is a huge mistake," Dimon said at a financial conference in New York.
"Businesses feel pretty good because they look at their current results," Dimon added. "But those things change, and we don't know what the full effect of all this is going to be 12 or 18 months from now."
Helping support tech names on Monday, Morgan Stanley analyst Adam Jonas upgraded Tesla (NASDAQ: TSLA) stock to Overweight from Equal Weight on Sunday, forecasting a more than 60% upside for the electric vehicle maker. The firm also named Tesla one of its top picks, adding that the company's supercomputer project, called Dojo, has the potential to add as much as $500 billion in value.
Dow-member Disney (NYSE: DIS) shares also rose Monday after CNBC reported the entertainment giant and Charter Communications have reached a deal to end their cable blackout feud. The companies' deal will allow Disney's ad-supported streaming apps Disney+ and ESPN+ to be included in packages for some of Charter's Spectrum payTV customers.
Qualcomm (NASDAQ: QCOM) shares jumped Monday after the chipmaker announced it will supply Apple (NASDAQ: AAPL) with 5G modems for its smartphones through 2026. The continued sales to Apple is expected to boost Qualcomm's hardware business, with about 21% of the chipmaker's fiscal 2022 revenue coming from Apple, according to estimates from UBS.
Shares of food manufacturer J.M. Smucker (NYSE: SJM) dropped about 7% after announcing it will acquire Hostess Brands (NASDAQ: TWNK) for roughly $5.6 billion, or $34.25 per share. Under the deal, Hostess shareholders will receive $30 in cash and .03002 shares of Smucker's stock for each share of Hostess owned. Smucker will also assume Hostess' roughly $900 million of debt. The deal is expected to close in Smucker's fiscal third-quarter, which ends in January.
On Tuesday, Apple will hold its product event, called "Wonderlust," where the tech company is widely expected to unveil the iPhone 15.
Later this week, traders will react to fresh economic releases for August's Consumer Price Index, Producer Price Index, U.S. Retail Sales, and Consumer Sentiment.