The US stock market is experiencing a strong rebound, with the S&P 500 and Nasdaq Composite on track for their eighth consecutive daily gain. This streak began on August 8 and has seen the S&P 500 rise nearly 8% since then. On Monday, the S&P 500 rose nearly 1%, while the Nasdaq Composite added 1.4%. The Dow Jones Industrial Average also gained 0.6%, marking its fifth consecutive increase.

Investors are focusing on the upcoming Federal Reserve meeting at Jackson Hole, where Fed Chair Jerome Powell will deliver a speech on Friday. The market is anticipating clues on potential interest rate cuts in September. Recent economic data, including encouraging inflation and consumer spending figures, have helped alleviate recession fears and boost market confidence.

Retail earnings from companies like Lowe’s, Target, and Macy’s will also be closely watched this week. Additionally, the Democratic National Convention is set to begin, which could provide insights into the economic policies of presidential nominee Kamala Harris.

The market’s recent gains have been broad-based, with sectors such as communication services, consumer discretionary, technology, and basic materials contributing to the upswing. Stocks like Nvidia have seen significant gains, driven by positive notes from analysts. The market’s positive sentiment is expected to continue, with Goldman Sachs predicting that the S&P 500 will hit fresh record highs over the next four weeks.