Stocks Are Rising, With Tech Leading the Way Higher

Technology stocks were leading the broader market higher in early Monday trading as traders braced for a busy week ahead.

The Nasdaq Composite was up 0.9% shortly after the market opened. The S&P 500 index was up 0.7%. The Dow Jones Industrial Average added 163 points, or 0.5%.

“Today there are no notable economic reports nor any Fed speakers, so focus will remain on Treasury yields and if yields are relatively stable, then stocks can rebound from last week’s losses,” writes Sevens Report Research’s Tom Essaye.

The big event of the week will be the release of the consumer-price index for August on Wednesday. The inflation reading will inform the Federal Reserve’s next moves on inflation. Investors are increasingly betting that the central bank may be done increasing the headline interest rate. Traders are pricing in 57.6% odds the target rate holds steady through the end of the year, compared to 52.6% odds on Friday, according to the CME FedWatch Tool.

“The market’s ability to rebound in the near term could hinge on this week’s inflation numbers, especially Wednesday’s Consumer Price Index,” writes Chris Larkin, managing director, trading and investing at E*TRADE from Morgan Stanley. “If it comes in hotter than expected, it could fuel worries that the Fed may turn even more hawkish and raise rates again.”

Aside from the CPI, investors can look forward to the National Federation of Independent Business’ small business optimism index for August on Tuesday, the Census Bureau’s retail sales data for August on Thursday, and the University of Michigan’s consumer sentiment index for September on Friday.

Apple (ticker: AAPL) stock, which had weighed on the tech sector last week, was up 1%. Apple is expected to unveil its next line of iPhones at its event on Tuesday. Investors will be watching closely.