US stocks rebounded on Monday on the heels of the S&P 500's worst week since early 2023, as inflation came back into focus for investors gauging pressures that could influence the size of interest rate cuts. The S&P 500 climbed nearly 1.2%, coming off a hefty weekly loss. The Dow Jones Industrial Average jumped more than 450 points, or 1.2%, while the tech-heavy Nasdaq Composite rose more than 1%. Financials , Industrials , and Energy stocks led the market rebound.
The major averages regained some of the ground they lost after the August jobs report failed to settle a key question: How aggressively will the Federal Reserve lower interest rates? The neither-hot-nor-cold data left Wall Street guessing whether a cut of 25 or 50 basis points is likely at this month's policy meeting.
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