Nasdaq Soars, Stocks Rise After This Week's Inflation Data

The Nasdaq Composite Index surged on Monday, leading the broader market higher as investors reacted to this week's inflation data. The index, which is heavily weighted towards technology stocks, gained 1.3% to close at a new record high. The S&P 500 also rose, gaining 1.1%, while the Dow Jones Industrial Average advanced 0.7%.



The rally in tech stocks came as investors digested the latest inflation data, which showed that consumer prices rose 0.1% in August, below expectations. The core consumer price index, which excludes food and energy, also rose less than expected. This news has led investors to believe that the Federal Reserve may not need to raise interest rates as aggressively as previously thought, which is positive for tech stocks.



However, not all tech stocks participated in the rally. Shares of Tesla (TSLA) fell 3.4% on Monday, despite the broader market rally. The electric vehicle maker's stock has been under pressure in recent weeks, as investors have become increasingly concerned about the company's ability to deliver on its production targets.



The rally in tech stocks also comes as the Federal Reserve is expected to announce a 75 basis point interest rate hike later this month. While this is seen as a negative for the broader market, investors appear to be betting that the Fed will not need to raise rates as aggressively as previously thought, given the softer-than-expected inflation data.

Overall, the rally in tech stocks and the broader market reflects investors' optimism about the economic recovery and the Fed's accommodative monetary policy. However, investors should remain cautious, as the Fed's reaction to the inflation data will continue to influence market sentiment and stock prices in the coming weeks.

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