Stocks move higher ahead of inflation data, Fed meeting

US stocks rose on Monday ahead of a busy week for investors, with key inflation data and the Fed’s final policy meeting of the year the highlights.

The S&P 500 Index (^GSPC) rose 0.5% in midday trading, while the Dow Jones Industrial Average (^DJI) up 0.8%. The tech-heavy Nasdaq Composite (^IXIC) increased by 0.3%.

All three major indexes ended with losses in Friday’s session, limiting the worst week for stocks since September. The S&P 500 fell 3.4% while the Dow fell 2.8%. The tech-heavy Nasdaq fell 4% that week.

Investors Also keeping an eye on oil early Monday, with WTI crude up 3.3% to trade at $73.39 after crude settled at a new 2022 low on Friday.

Government bond yields also fell slightly, with 10-year US Treasury yields at around 3.523% early Monday, a few basis points below Friday’s settlement.

Wall Street is set for a busy week, as consumer price data released on Tuesday is expected to help inform the expected trajectory of interest rates over the coming months.

Economists surveyed by Bloomberg estimate the headline CPI will rise 0.3% for the second straight month, with the annual CPI falling from 7.7% to 7.3%.

The Fed will make its next rate decision on Wednesday following the conclusion of its two-day policy meeting, with investors expecting the Fed’s base rate to rise by 0.5%.

While this week’s inflation data and the Federal Reserve’s decision are top of mind for investors, some of Wall Street’s most prominent strategists have another concern: downgrades. future profits.

Michael Wilson of Morgan Stanley wrote in a note on Monday: “The final chapter of this bear market is all about the earnings path, which is way too high. As a result, Wilson called the consumer price index print and the Fed meeting “yesterday’s news.”

In company news, Blue Twitter will re-launch on Monday with a surcharge of nearly 30% for iPhone owners. The service still costs $8 per month, but will be $11 for those who purchase the service through the App Store.

Shares of Horizon Therapeutics Public Limited Company (HZNP) surged 14% on Monday after Amgen agreed to acquire the company in a $27.8 billion cash deal, marking it the largest healthcare merger of the year, according to to the Wall Street Journal.

Shares of Coupa Software Incorporated (coup) skyrocketed 26% after spending management software company announced it will be acquired by private equity firm Thoma Bravo LP for $8 billion.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniroromerotv

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