• Wall Street ended higher on September 9, as the DJIA, S&P 500 and Nasdaq closed up by +1.20%, +1.16%, +1.16%, respectively.
• Stocks gained moderately on Monday as dip buying followed Friday’s sell-off. Chip stocks lifted the broader market, with Nvidia (NVDA) up over 3% and Tesla (TSLA) rising more than 2%. In addition, Palantir Technologies (PLTR) surged 13%, and Dell Technologies (DELL) gained more than 3% after both were announced as additions to the S&P 500, effective September 23.
• The 10-yr UST yield fell by -2.0 bps to 3.70%, while the 2-yr yield rose by +2.0 bps to 3.68%. T-notes experienced a weaker start on Monday as the stock market's recovery reduced demand for safe-haven assets. Additionally, the upcoming auction of USD119 billion in Treasury debt, beginning with a USD58 billion 3-yr T-note on Tuesday, is expected to weigh on bond prices.
• Markets are eyeing Wednesday’s US CPI data to see if inflation has cooled enough for the Fed to ease policy more aggressively. Consensus expects August CPI to dip to +2.6% YoY from +2.9% in July, while the August core CPI is forecast to remain steady at +3.2% YoY.
• The Sentix investor confidence index in the Eurozone fell to -15.4 in September from -13.9 in August, marking its lowest level since January 2024. This indicates growing pessimism among investors about the economic outlook in the Eurozone.
• In Asia, China's annual inflation rose to +0.6% YoY (+0.4% MoM) in August 2024 from +0.5% in July, below the forecast of +0.7%. Meanwhile, producer prices fell -1.8% YoY, deeper than July's -0.8% drop and worse than the expected -1.4%.
• Global bond yields were mixed on Monday: the 10-yr German bund yield fell by -0.4 bps to 2.16%, the 10-yr UK gilt yield slid -3.0 bps to 3.86%, and the 10-yr Japanese JGB closed up by +4.7 bps to 0.90%.
