01:54 PM EDT, 09/09/2024 (MT Newswires) -- US equity indexes jumped after midday on Monday as financials and industrials led a rally that helped a recovery from declines last week.

The Nasdaq Composite rose 1.1% to 16,877.6, with the S&P 500 index up 1.2% to 5,472.2 and the Dow Jones Industrial Average 1.3% higher at 40,853.5. All sectors rose intraday, with financials also among the top gainers.

All three indexes closed lower last week as investors assessed the depth of the interest-rate cut likely on Sept. 18 when the Federal Open Market Committee will announce its policy decision. The Fed will lean toward a 50 basis point cut if the macroeconomic data worsens, signaling significant weakness ahead.

In economic news Monday, wholesale inventories rose 0.2% in July, revised down from a 0.3% increase in the advance reading and a flat print in June. Analysts in a survey compiled by Bloomberg expected July inventories to be unrevised.

The probability of a 25 basis-point cut next week stood at 73% as of Monday afternoon, according to the CME Group's FedWatch Tool. The remaining 27% likelihood was for a 50 basis-point drop. "We continue to expect a broad deceleration into year-end but without recession," Morgan Stanley said in a note.

The CBOE's Volatility Index (VIX), also known as the fear index, sank 13% intraday to 19.36.

Treasury yields were mixed, with the 10-year yield down 1.5 basis points to 3.69%. The two-year rate was up 1.3 basis points at 3.66%, after trading lower earlier in the session.

In company news, Boeing ( BA ) shares jumped 3.6% intraday, the top gainer on the Dow, after the plane maker said Sunday that it reached a tentative labor deal with the International Association of Machinists and Aerospace Workers, representing more than 33,000 employees.

Moderna ( MRNA ) said Monday it received Health Canada's Drug Establishment License for its production site in Laval, Quebec. Shares surged 6.1% intraday, among the top performers on the S&P 500 and the Nasdaq.

Apple ( AAPL ) used Arm Holdings' ( ARM ) V9 chip design in the A18 chip of its iPhone 16 and will likely launch its new smartphone on Monday, the Financial Times reported, citing unnamed sources familiar with the matter. Arm Holdings ( ARM ) shares climbed 7.4% intraday, among the leaders on the Nasdaq.

West Texas Intermediate crude oil jumped 1.5% to $68.68 a barrel, rebounding from its lowest this year.

"There is no point in trying to get away from the fact that last week's oil performance was anything less than terrible ... a small recovery in prices is underway this morning, inspired by hurricane warnings that might threaten the US Gulf Coast, but the wider conversation remains on where demand will come from and what OPEC+ can do," PVM Oil Associates said in a note.

Gold rose 0.4% to $2,533.50 an ounce, and silver jumped 1.6% to $28.64.