Traders work on the floor of the New York Stock Exchange during morning trading on August 20, 2024 in New York City.Boeing shares led the way higher for the Dow, rising 3.3%. American Express and Caterpillar also advanced more than 1%. Tech and communication services were the best-performing S&P 500 sectors, advancing more than 1% each.
This week, investors will watch out for two key inflation reports that could further inform the Federal Reserve's decision at its next open market committee meeting. August's consumer and producer price reports are slated for release on Wednesday and Thursday morning, respectively. The sell-off in stocks "has been driven by a narrow group, and we already knew that September is a seasonally weak month for equities," Allen wrote in a report entitled "Why are markets so nervous right now, and is this justified?"