Major U.S. stock indices rebounded on Monday, recovering some of the significant losses incurred last week, as concerns about a cooling job market came into sharper focus.
The S&P 500, Dow Jones Industrial Average, and Nasdaq all posted nearly identical gains of approximately 1.2% by the end of the trading day.
Attention now turns to inflation, with the Consumer Price Index (CPI) report scheduled for release on Wednesday. This data will serve as the final key indicator of price pressures before the Federal Reserve’s policy meeting next week.
Super Micro Computer and Airline Stocks Lead Gains
Super Micro Computer (SMCI) saw its shares soar 6.1%, marking the strongest performance in the S&P 500 on Monday. The stock had recently faced scrutiny from short seller Hindenburg Research over alleged accounting issues. However, a report from forensic accounting firm GlassHouse Research downplayed these concerns, helping to lift the stock.
Airline stocks also saw a boost following optimistic remarks from BofA Securities. Analysts highlighted the sector’s potential benefits from stable demand, reduced fuel costs, and moderated domestic capacity. JetBlue (JBLU) shares surged 7.2% after BofA upgraded the stock to “neutral” and praised the carrier’s strategic progress. United Airlines (UAL) gained 6%, while Delta Air Lines (DAL) and American Airlines (AAL) both advanced 3.9%.
Paycom Software Recovers; Enphase Energy and Humana Decline
Paycom Software (PAYC) saw a 5.8% increase in its share price, rebounding from recent declines. The company reported strong recurring revenue growth and updated its full-year guidance positively, which helped counteract concerns over CEO Chad Richison’s recent stock sales.
Conversely, Enphase Energy (ENPH) experienced the largest decline in the S&P 500, with shares dropping 5.2%. Despite analysts’ expectations that interest rate cuts could support its international expansion, the stock remains down over 20% for the year.
Humana (HUM) shares fell 3.9% after Leerink Partners raised concerns about potential risks to the insurer’s “Star ratings” for its healthcare plans. These ratings impact the company’s eligibility for quality bonuses from the Centers for Medicare and Medicaid Services.
Bath & Body Works (BBWI) shares decreased by 3.7%, continuing a downward trend since the company revised its sales forecast lower in late August due to challenging consumer spending patterns.
