The U.S. stock market indices Nasdaq Composite, S&P 500 and Dow Jones are expected to trade higher on Monday as encouraging data eased recession fears following a brutal sell-off on Wall Street in early August.

The S&P 500 has rallied more than 6 percent since August 5, when a sharp decline sent the U.S. benchmark index to its biggest three-day fall in more than two years. A quick return to calm was also evident in the Cboe Volatility Index, Wall Street’s “fear barometer,” which has fallen at a record pace from its four-year high hit last week, according to a Reuters report.

Some of the biggest winners of 2024 have staged strong recoveries since August 5. Chipmaker Nvidia has gained more than 20 percent, while the Philadelphia SE Semiconductor Index has gained more than 14 percent. Small-cap stocks that had strong performances in July have also recovered from recent lows. The Russell 2000 gained nearly 5 percent, Reuters reported.

Meanwhile, traders are withdrawing bets that the US Federal Reserve will have to make massive interest rate cuts in September to avert a recession.

The Fed’s plans may become clearer this week when Chairman Jerome Powell speaks at the central bank’s annual economic policy symposium in Jackson Hole, Wyoming.

FAQ

Q1. What are the major US stock market indices?
A1. Important US stock market indices are Nasdaq Composite, S&P 500 and Dow Jones.

Q2. What is the Wall Street Fear Indicator?
A2. Wall Street’s “fear indicator” is the Cboe Volatility Index.