- US stocks moved higher on Monday as the US dollar fell by the most in two weeks.
- Investors are getting more hopeful about a potential soft landing after comments from Treasury Secretary Janet Yellen.
- Ongoing progress on inflation suggests the Fed will pause its interest rate hikes later this month.
US stocks jumped on Monday, with technology stocks leading the way as the dollar fell nearly half a percent, representing its biggest decline in two weeks.
The dollar has had an outsized impact on stock prices over the past year. Stocks began to rally in late 2022 right after the US dollar started to break down, and a recent sell-off in stocks this past August was preceded by a sharp rise in the dollar.
Meanwhile, the outlook for a potential soft landing in the US economy, in which inflation is tamed without a recession, is looking better and better according to Treasury Secretary Janet Yellen.
"I am feeling very good about that prediction. I think you'd have to say we're on a path that looks exactly like that," she said on Sunday.
Ongoing progress in limiting the rise of inflation suggests that the Federal Reserve will pause interest rate hikes at its meeting later this month.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
- S&P 500: 4,485.82, up 0.64%
- Dow Jones Industrial Average: 34,732.09, up 0.45% (155.50 points)
- Nasdaq Composite: 34,732.09, up 0.87%
Here's what else is going on today:
- The Chinese yuan bounced from its 16-year low on Monday as China's central bank announced it would continue to support the embattled currency through its prolonged slump.
- US consumer debt fears are overblown as borrowing slows and inflation cools, according to Moody's Analytics' chief economist.
- A hacker gained access to the X account of ethereum co-founder Vitalik Buterin and posted a malicious link to 4.9 million followers on Saturday.
In commodities, bonds, and crypto:
- Oil continued to rise. West Texas Intermediate crude oil ticked up 0.09% to $87.59 a barrel. Brent, the international benchmark, gained 0.31% to $90.93 a barrel.
- Gold jumped 0.52% to $1,952.80 per ounce.
- The yield on the 10-year Treasury bond rose two basis points to 4.29%.
- Bitcoin fell 0.65% to $25,665.