Wall Street Surges as S&P 500 Gains 2.3% and Nasdaq Jumps 2.7% Ahead of Key Inflation Data

U.S. stocks rallied sharply on Monday, with the S&P 500 rising 2.3% to 7,549.94, the Dow Jones Industrial Average gaining 2.2% to 52,389.75 and the Nasdaq Composite climbing 2.7% to 25,253.14. The advance came as investors returned to AI-related shares and oil prices retreated.

Attention now turns to the October consumer price index, due Tuesday at 8:30 a.m. ET. Economists surveyed by Dow Jones expect headline inflation of 0.3% month over month and core inflation of 0.2%, a cooler pace than September's 0.6% and 0.3%. Early Tuesday futures were mixed, with the Nasdaq-100 slightly lower.

For diversified portfolios, the inflation print could set the tone for rate expectations and for the rebound in growth and technology names. A softer reading would support the recovery, while a hot number could test it.