Tech Firms Rally Ahead of Key Inflation Data

Stock markets saw gains on Monday, driven by tech firms, as investors await key US inflation data this week that could lead to a September interest rate hike from the Federal Reserve. Despite a strong jobs reading last Friday, traders are still betting on a rate increase.

A fresh wave of US-Iran strikes over the weekend pushed oil prices higher and added upward pressure to inflation expectations. Diesel prices in the United States set a new record Monday, according to the AAA motorists' association, due to damage at Gulf refineries during the war against Iran.

Market analyst Dan Coatsworth noted that many headlines from the dominant AI theme remain positive, but investors are contending with the potential for an interest rate hike. US consumer prices for August will be released on Friday, likely worsening core inflation and cementing investor expectations of a Fed rate increase.