The Dow Jones Industrial Average rose Monday as traders looked ahead to a highly anticipated Federal Reserve meeting and new inflation data.
The blue-chip Dow added 273 points, or 0.8%. The S&P 500 rose 0.5%, and the Nasdaq Composite added 0.4%.
Coupa Software and Horizon Therapeutics were among biggest movers on Monday after the companies announced they’ve agreed to be bought. Meanwhile, Cheesecake Factory shares dipped following a downgrade by Goldman Sachs.
The moves comes as investors remain focused on inflation. On Tuesday, the November consumer price index will be released and traders will be looking for a sign that inflation is slowing.
A survey released Monday showed consumers are growing more optimistic about inflation. Respondents in the New York Federal Reserve’s Survey of Consumer Expectations indicated they see inflation coming down both in the short term, one year out, as well as in the three- and five-year outlook.
Also Tuesday, the Federal Reserve will begin its two-day meeting and is expected to announce another rate hike on Wednesday, though traders are anticipating a smaller move than in recent months.
In addition to the expected rate hike, the Fed’s updated economic projections and Chair Jerome Powell’s press conference could be key signals for what the central bank wants to do in the coming months.
“Financial conditions have eased dramatically since the October CPI reading released last month, so the Fed will likely use the December FOMC meeting to walk…
