S&P 500 gains as Wall Street bets on 50bp rate cut

Stocks gained on Monday as Wall Street continued to bet that the Federal Reserve will cut interest rates this month.

Summary

• S&P 500 and Nasdaq rose as stocks began the week largely in the green.
• Wall Street will be keen on two important inflation reports this week.
• Investors are optimistic as they eye Federal Reserve’s upcoming meeting.

Ahead of a week when additional inflation data will provide further insights into the U.S. economy, investors are displaying early enthusiasm. The benchmark S&P 500 index was up 0.2% at the open, while the Nasdaq rose 0.6% in early trading.

While the Dow Jones Industrial Average lagged by about 40 points to start on a slightly negative note, the broader outlook suggests the blue-chip index could edge up amid all-around gains. Notably, the Dow closed the previous week with a 220-point dip on Friday.

The major gauges are showing an overall bullish outlook as stocks such as Nvidia, Meta, MicroSoft and Tesla gained.

Meanwhile, Bitcoin (BTC) reclaimed the $112k area amid a slight uptick. Gold remained at all-time highs while oil prices gained after OPEC+ agreed on increased production but at a modest rate.

Investors bet on 50 basis points rate cut

Key for investors this week will be the two inflation reports of producer price index and consumer price index. PPI is set for release on Wednesday while CPI drops on Thursday, September 11, 2025

Wall Street is keen on what the two key inflation reports suggest about the U.S. economy, with investors mindful of last week’s August jobs data. Market analysts say the PPI and CPI reports will provide insights not just into the state of the U.S. economy, but also into whether the Federal Reserve will make a larger rate cut.

Investors largely bet on a 25-basis-point rate cut at the Fed’s meeting next week for most of the past few months. However, given the softer-than-expected jobs data, there has been a marked shift in sentiment, and the market now bets on a potential 50 basis points cut.