U.S. stocks ended higher as investors await inflation data

NEW YORK, Oct. 8 (Xinhua) — U.S. stocks ended higher on Tuesday, with a surge in technology shares driving a broader market rebound that saw the Nasdaq Composite achieve its strongest performance in nearly three weeks.

The Dow Jones Industrial Average rose 126.13 points, or 0.30 percent, to 42,080.37. The S&P 500 added 55.19 points, or 0.97 percent, to 5,751.13. The Nasdaq Composite Index increased 259.01 points, or 1.45 percent, to 18,182.92.

Nine of the 11 primary S&P 500 sectors ended in green, with technology and communication services leading the gainers by adding 2.12 percent and 1.07 percent, respectively. Meanwhile, energy and materials led the laggards by losing 2.63 percent and 0.37 percent, respectively.

Investors’ confidence has grown, as many believe the Federal Reserve is making progress in controlling inflation without triggering a recession. “What we’re cautioning investors is not to read too much into each data point,” said Todd Walsh, CEO and chief technical analyst at Alpha Cubed Investments. “The Fed seems to be on track from what we’re looking at.”

However, concerns about the potential economic impact of the hurricane season remain. Atlanta Fed President Raphael Bostic warned on Tuesday that the effects of the current hurricane season could extend beyond six months. He cited the devastation caused by Hurricane Helene and expressed the hope that the approaching Hurricane Milton would not cause similar levels of destruction.

The easing of rising U.S. Treasury yields provided a boost to tech stocks, but interest rate policy remains the primary driver for traders and the broader U.S. equity markets. Investors are now gearing up for the start of the earnings season, which will gain momentum on Friday with results from JPMorgan Chase, Wells Fargo, and BlackRock. In addition, they are closely watching for the next major data release on consumer inflation, expected on Thursday.