The Dow Jones Industrial Average rose 236.77 points, or 0.58 percent, to 40,896.53. The S&P 500 added 54.00 points, or 0.97 percent, to 5,608.25, logging its longest winning streak since Nov. 8, 2023. The Nasdaq Composite Index increased by 245.05 points, or 1.39 percent, to 17,876.77, recording its longest winning streak since Dec. 19, 2023.
All of the 11 primary S&P 500 sectors ended in green, with technology and communication services leading the gainers by adding 1.44 percent, respectively. Consumer staples posted the weakest growth, up by 0.32 percent.
"The market has almost fully recovered from the overblown recession fears earlier this month," said Greg Marcus, managing director of UBS Private Wealth Management. "We expect volatility to remain high for the rest of the year."
"While we do remain generally bullish, we don't see a straight line up in the market," Marcus said.
The U.S. economy is slowing and there will likely be a mix of conflicting economic data points over the coming months, which is set to continue this recessionary debate, according to Marcus.
Minutes from the Fed's July meeting are due Wednesday this week, followed by the Jackson Hole Economic Symposium, starting Thursday in Kansas City. Investors will be keen to hear what the Fed Chair Jerome Powell foresees for interest rates.
"While our view is that risk could be to the upside, we do not believe that Jackson Hole will spur the large equity moves that it has in the past when the Fed used it as forum to telegraph upcoming policy decisions," said BofA strategist Ohsung Kwon. But he added that stock upside will be limited as the market awaits Nvidia earnings the following week.
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