- Tesla rallies on Morgan Stanley upgrade
- Qualcomm climbs after deal to supply 5G chips to Apple
- Hostess Brands up after J.M. Smucker's $5.6 bln buyout deal
- Indexes: S&P 500 +0.67%, Nasdaq +1.14%, Dow +0.25%
Sept 11 (Reuters) - The Nasdaq closed sharply higher on Monday as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week.
Tesla (TSLA.O) rallied 10% after Morgan Stanley upgraded the electric car maker to "overweight" from "equal-weight," saying its Dojo supercomputer could boost the company's market value by nearly $600 billion.
Walt Disney (DIS.N) added 1.2% and Charter Communications (CHTR.O) rose 3.2% after they reached a deal for Disney's programming, including ESPN, to return to the Spectrum cable service just hours ahead of the start of NFL "Monday Night Football."
Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes. That will be followed by producer price data on Thursday.
A New York Fed survey showed Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health.
"What we're seeing is a lot of positive sentiment that is really tied to bullishness around the likely CPI and PPI numbers being more in line with moderation," said Greg Bassuk, chief executive officer of AXS Investments in New York.
"As long as the inflation numbers for August come in within the band of expectations, we're going to see the Fed move away from additional rate hikes."
Wall Street logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
Traders see a 93% chance that the central bank will hold its interest rates at current levels at its September meeting, while chances of a pause in November stand at 57%, according to the CME FedWatch Tool.
Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.
The S&P 500 climbed 0.67% to end at 4,487.46 points.
The Nasdaq gained 1.14% at 13,917.89 points, while Dow Jones Industrial Average rose 0.25% to 34,663.72 points.
Volume on U.S. exchanges was relatively light, with 9.3 billion shares traded, compared to an average of 10.0 billion shares over the previous 20 sessions.
Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) by a 1.5-to-one ratio.
The S&P 500 posted 14 new highs and 11 new lows; the Nasdaq recorded 36 new highs and 199 new lows.
Reporting by Ankika Biswas, Shreyashi Sanyal and Shubham Batra in Bengaluru, and by Noel Randewich in Oakland, Calif; Editing by Arun Koyyur, Vinay Dwivedi and Richard Chang
Our Standards: The Thomson Reuters Trust Principles.
Shristi is a correspondent, part of the markets team reporting on the stock markets across U.S., UK, Canada, Europe and Emerging markets.