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 0.7%, coming off a drop of 1.7% for the benchmark as major US gauges closed with hefty losses. The Dow Jones Industrial Average jumped 0.6%, or more than 250 points, while the tech-heavy Nasdaq Composite led the advance with a roughly 0.9% gain.
Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut At the same time, comments by Fed officials appeared to tilt the market in favor of a 0.25% cut by suggesting that incoming data would have to support the need for larger and further easing. Focus is now on a fresh consumer inflation print due Wednesday to provide clues to the path of rates.
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