Dow Jones Industrial Average Rallies As Rate Hike Concerns Fade

The Dow Jones Industrial Average (DIA) rallied thanks to a surge in biotech stocks on Monday.

Meanwhile, expectations for a rate hike in September lowered as traders digested comments from several U.S. Federal Reserve officials.

Atlanta Federal Reserve Bank President Dennis Lockhart said that the central bank should have a “serious discussion” about a rate hike this month. However, he said that the Fed didn’t need to act with any urgency given the current state of the U.S. economy.

With the Fed in focus, Money Morning Capital Wave Strategist Shah Gilani says that market volatility is on the verge of roaring back in September. Check out what he has to say, right here.

Let’s look at the final numbers on Monday for the Dow, S&P 500 (SPY), and Nasdaq (QQQ):

Dow Jones: 18,325.07; +239.62, +1.32%

S&P 500: 2,159.04; +31.23; +1.47%

Nasdaq: 5,211.89; +85.98; +1.68%

Here’s a look at today’s most important market events.

DJIA: Biotech Bump Pushes Dow Higher, Oil Prices Remain Flat

The Dow Jones gained more than 239 points as expectations of a September interest rate hike faded. The never-ending chatter about interest rates continues to dominate the narrative about the markets. Federal Reserve Governor Lael Brainard said that the central bank should keep monetary policy loose despite improving signs in the U.S. economy.

Oil prices were higher on Monday thanks to weakness in the U.S. dollar. Investors are also still weighing Friday’s report by Baker Hughes Inc. (NYSE: BHI) that the U.S. rig count increased for the 10th straight week. The WTI crude oil price gained 0.4%, meanwhile, the WTI crude oil price added 0.3%.

But the big news today was the health of Democratic presidential candidate Hillary Clinton. On Monday, the political and financial media were asking, “Will Hillary Clinton drop out of the presidential race?” Clinton was recently diagnosed with pneumonia and appeared to collapse during a 9/11 memorial ceremony in New York City over the weekend. According to reports, Democrats are nervous about Clinton’s health, prompting speculation about the future of her candidacy. Here’s the latest on Clinton’s health scare and what to expect during the 2016 election.