Stocks Extending Last Week's Rebound

U.S. stocks are starting the week in positive territory, extending last week's advance that snapped a three-week losing streak. Equity and economic news is light, but is set to heat up this week, beginning with tomorrow's consumer price inflation report that will commence the development of the August inflation picture. However, Bristol-Myers Squibb is rallying after the U.S. Food & Drug Administration approved the company's oral treatment for plaque psoriasis, while August retail sales and a preliminary look at September consumer sentiment are also due out this week. Treasury yields are declining, and the U.S. dollar continues to pull back from its recent rally to multi-decade highs, which seemed to boost the global markets. Crude oil and gold prices are trading higher. Asia finished broadly higher though many markets were closed for holidays, and Europe is seeing widespread gains despite data and some hawkish monetary policy comments on both sides of the pond.

At 10:55 a.m. ET, the Dow Jones Industrial Average is up 0.9%, the S&P 500 Index is rising 1.1%, and the Nasdaq Composite is increasing 1.0%. WTI crude oil is gaining $1.67 to $88.46 per barrel, and Brent crude oil is advancing $1.80 at $94.64 per barrel. The gold spot price is trading $11.50 higher to $1,740.10 per ounce, and the Dollar Index is falling 0.8% to 108.22.

Bristol-Myers Squibb Company (BMY $74) is rallying after the U.S. Food & Drug Administration (FDA) approved the company's oral treatment for plaque psoriasis.

The S&P 500 Index snapped a three-straight week losing streak last week, even as expectations remain elevated regarding continued tighter monetary policy by the Fed amid the backdrop of slowing economic growth. The August employment report also fostered some volatility, and Schwab's Chief Investment Strategist Liz Ann Sonders notes in her latest article, Are Jobs Livin' on the Edge?, how the August jobs report delivered something for both economic bulls and bears, but what matters more in the near term is the Fed's focus on seeing a continued easing in labor demand.

Treasury yields lower and U.S. dollar continues to pull back

Treasury yields are lower, with the yield on the 2-year note decreasing 5 basis points (bps) to 3.52%, the yield on the 10-year note declining 3 bps to 3.29%, and the 30-year bond rate trading 2 bps lower to 3.44%.

The markets continue to grapple with how much will the Fed remain aggressive with its monetary policy as containing inflation remains top priority. The U.S. dollar continues to pull back from a recent rally to multi-year highs.