Yahoo TV

STORY: US stocks rebounded Monday after selling off the previous week.

The Dow, S&P 500, and Nasdaq all rose about 1.2% each.

Investors had fled from equities last week when Friday's weaker-than-expected August jobs data followed weak manufacturing data on Tuesday.

That led to the Nasdaq’s biggest weekly loss since January 2022, and the S&P 500's biggest weekly decline since March 2023.

Key economic reports out this week include consumer and producer prices ahead of the Federal Reserve’s meeting next week.

Investors currently see a 100% chance policy makers cut interest rates with about 70% odds that cut is a quarter of a point, according the CME’s FedWatch tool.

Regardless of how much policymakers decide to cut rates this time, Will McGough, director of investments with Prime Capital Investment Advisors says they need to keep cutting them to avoid harming the economy.

“Everybody has the spotlight on Jerome Powell and the Fed right now. We know they're behind the curve, so to speak, with interest rates being way too high compared to everybody else, all other central banks around the globe. And they really need to normalize rates to be back in line with where economic data is and where their peers are, because the global rate curve is much lower and it's being restrictive here in the US and I think investors are concerned that a restrictive U.S. economy could start to slow down and that's the big fear that we're watching right now.”

Stocks on the move included Boeing which rose more than three percent after it reached a tentative deal with its largest union.

And Arm Holdings jumped seven percent after the FT reported over the weekend that Apple’s new iPhone will include a chip using Arm’s newest chip design.

Apple unveiled that new device, the iPhone 16 Monday which also includes AI software though investors were not impressed as the stock finished flat.