Wall Street’s main indexes were set to open higher on Monday following gains in megacaps led by Tesla, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve’s interest-rate path.Tesla jumped 6% in premarket trading as Morgan Stanley upgraded the EV maker to “overweight” from “equal-weight” due to potential growth in its market value because of Dojo, the firm’s supercomputer.Shares of other megacaps including Alphabet, Microsoft and Amazon rose between 0.4% and 0.8%.
Apple climbed 1.4% after a near 6% decline last week on China’s restrictions of iPhone usage for government officials, and ahead of its fall event on Sept. 12.U.S. stocks logged weekly declines on Friday as strength in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week.
Treasury yields inched up on Monday, with yields on 2-year note hovering around 4.9906%.Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.At 8:30 a.m. ET, Dow e-minis were up 71 points, or 0.21%, S&P 500 e-minis were up 22.25 points, or 0.5%, and Nasdaq 100 e-minis were up 118.25 points, or 0.77%.Among other stocks, Hostess Brands jumped 18.4% premarket after J. M. Smucker said it would buy the Twinkies-maker in a $5.6 billion deal.
Data over the weekend showed China’s consumer prices returned to positive territory in August, while factory-gate price declines slowed, as deflation pressures ease amid signs of stabilization in the economy.U.S.-listed shares of Chinese firms PDD Holdings, Xpeng, Baidu rose between 1.7% and 4.2%, while the iShares China Large-Cap ETF gained 1.5%.Meta Platforms added 1.3% after a report on Sunday said the firm was working on a new, more powerful artificial-intelligence system.