U.S. stocks open higher after biggest weekly sell-off in more than a year by Investing.com

Investing.com — U.S. stocks opened higher on Monday, as Wall Street stocks rallied after falling in the previous session following an August jobs report that left traders uncertain about the size of potential interest rate cuts at the Federal Reserve.

By 09:40 ET (13:40 GMT), the contract had gained 247 points, or 0.6 percent, was up 46 points, or 0.9 percent, and was up 178 points, or 1.1 percent.

“We don’t think the rally is fueled by any specific news since Friday’s close, but instead a (modest) decline in buying driven largely by oversold conditions and anticipation of monetary support,” analysts at Vital Knowledge said . in a note to clients.

Wall Street’s main averages fell on Friday after nonfarm payrolls figures for August showed a continued slowdown in the U.S. labor market, fueling concerns about the broader economy and all but guaranteeing the Fed will cut borrowing costs at the next two-day meeting in September. 17-18.

For the week, the benchmark index and 30 stocks posted their biggest weekly declines since March 2023, while the tech industry posted its biggest drop since January 2022.

Fed interest rate potential in focus

Investors’ bets that the Fed will cut rates by 25 basis points stood at 73 percent Monday morning, according to CME Group’s (NASDAQ: ) closely watched FedWatch tool.

Meanwhile, the probability of a 50 basis point cut was 27% after briefly jumping above 50% immediately following the jobs data.

The shares underscore continued uncertainty over how the central bank will react to the jobs report.

On Friday, Fed Governor Christopher Waller said “the time has come” for the Fed to cut interest rates, but remained open about the depth and pace of cuts.

Boeing shares rise after tentative union deal reached

Shares of Boeing (NYSE: .

Along with the wage increase, the proposed four-year deal would also include a commitment to build a new plane in the US Pacific Northwest, improved retirement benefits and an increase in the union’s contribution to the quality of the planes.

Union leadership, which represents more than 30,000 workers, recommended that members support the deal. However, if it is rejected and two-thirds vote to go on strike, workers could stage a walkout at midnight on Friday.

A job action would likely increase scrutiny of Boeing’s new chief executive, Kelly Ortberg, who is currently trying to improve the company’s finances and rebuild its reputation after a dangerous mid-air door plug breach in January.

Elsewhere, shares in crypto-related stocks such as digital currency exchange Coinbase (NASDAQ: ) and cryptominers Cleanspark (NASDAQ: ) and Marathon Digital (NASDAQ: ) advanced. The price of , the world’s best-known digital token, rose on Monday, extending its rally for a third straight day.

The price of oil is choppy

Oil prices hovered around the flat line on Monday as traders weighed the impact of a possible hurricane off the US Gulf Coast and gauged the market’s reaction to last week’s nonfarm payrolls report.

By 09:45 ET, the contract was down 0.3% at $70.83 a barrel, while U.S. West Texas Intermediate (WTI) futures were trading up 0.3% at $67.44 a barrel. Brent fell 10 percent to its lowest since December 2021 on Friday, while WTI fell to its lowest since June 2023, according to Reuters.

The U.S. National Hurricane Center said over the weekend that a weather system in the Gulf of Mexico is expected to develop into a hurricane before hitting the northwest U.S. Gulf Coast — a region crucial to U.S. refining capacity.

Elsewhere, the prospect of lower interest rates also helped support crude oil. In theory, a drop in borrowing costs could boost economic activity and spur an increase in demand for oil.

However, executives from global commodities traders Gunvor and Trafigura told the Asia Pacific Petroleum Conference in Singapore that oil prices could trade between $60 and $70, in part because of ongoing warm demand from China, the importer of top oil.

Reuters contributed to this report.