Wall Street bounces back as key data loom

The Dow Jones Industrial Average snapped a five-day losing streak, gaining 0.8 per cent to close at 34,869.63.
The Dow Jones Industrial Average snapped a five-day losing streak, gaining 0.8 per cent to close at 34,869.63.PHOTO: REUTERS

NEW YORK (AFP) - US shares rebounded after a negative week, closing Monday's (Sept 13) session higher as investors await key economic data and a Federal Reserve meeting in coming days.

Markets have been shaky of late amid signs the recovery has slowed, challenged by surging Covid-19 infection rates and signs of rising inflation, which could prompt the Fed to tighten monetary policy sooner.

Investors also are monitoring debates in Congress, including a Democratic proposal to raise the corporate tax rate slashed in 2017 under then-president Donald Trump.

But even with those concerns lingering, the Dow Jones Industrial Average snapped a five-day losing streak, gaining 0.8 per cent to close at 34,869.63.

The broad-based S&P 500 rose 0.2 per cent to finish at 4,468.73, but the tech-rich Nasdaq Composite Index retreated 0.1 per cent to 15,105.58.

JJ Kinahan of TD Ameritrade noted that since corporate earnings season is largely over, "Now we're going into this strange period, where you kind of have a lack of numbers." In that "no man's land," he said, "the market is looking for anything to trade off." But into the void comes the latest report on consumer prices for August on Tuesday, followed by retail sales on Thursday, which will offer insights on how the economy is holding up.

That could play into the Fed's policy meeting next week.