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Apple ( AAPL ) little changed after latest iPhone unveiling

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Boeing ( BA ) jumps after reaching tentative labor deal

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Dell, Palantir ( PLTR ) rise as stocks to be added to S&P 500

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Indexes up: Dow 1.2%, S&P 500 1.16%, Nasdaq 1.16%

(Updated with final prices)

By Sinéad Carew and Shubham Batra

Sept 9 (Reuters) -

Wall Street's three major indexes gained more than 1% on

Monday as investors looked for bargains after the previous

week's sell-off while they also waited for inflation reports in

coming days and the Federal Reserve's next policy decision next

week.

Investors had fled from equities last week when Friday's

weaker-than-expected August jobs data followed weak

manufacturing data on Tuesday, driving the Nasdaq Composite's

biggest weekly loss since January 2022, and the S&P

500's biggest weekly decline since March 2023.

Along with jitters about the U.S. economy's health investors

have been contending with uncertainty about the Fed's interest

rate decision due Sept. 18. But they arrived at their desks in

what looked like more bullish moods on Monday.

"Investors had a little time over the weekend to think

about things. Clearly there was an overreaction to economic data

last week. It raised overblown fears of a potential recession,"

said Kristina Hooper, chief global market strategist at Invesco.

"A pause gives you the opportunity to be more rational."

The Dow Jones Industrial Average rose 484.18

points, or 1.20%, to 40,829.59, the S&P 500 gained 62.63

points, or 1.16%, to 5,471.05 and the Nasdaq Composite

gained 193.77 points, or 1.16%, to 16,884.60.

This week's key events include the consumer price index

(CPI) report, due Wednesday morning after Tuesday night's first

debate between U.S. presidential candidates Democrat Kamala

Harris and Republican Donald Trump ahead of the Nov. 5 election.

But in the meantime Phil Blancato, chief market strategist

at Osaic Wealth, New York said investors are taking another look

at "high quality stocks that are cheaper."

In particular Blancato pointed to shares of market

heavyweight and artificial intelligence chipmaker favorite

Nvidia ( NVDA ), which closed up 3.5% on Monday after falling

15.3% last week.

However, since trading is usually more muted before big

economic news, Blancato was concerned to see a rally before

Wednesday's CPI inflation report, which is expected to help

inform whether the Fed cuts rates by 25 or 50 basis points.

"The market's expecting a very soft print and locking in a

Fed cut. What happens if we don't get that?" said Blancato who

expects volatility after whatever decision the Fed makes.

Some investors will be disappointed if the Fed only cuts

rates by 25 basis points but if the cut is double that, they

will be worried that the Fed has big concerns about the economy.

"It's a lose-lose situation," the strategist said.

Wednesday's report is expected to show a moderation in

headline inflation in August to 2.6% on a yearly basis, while on

a monthly basis it is expected to remain unchanged at 0.2%. The

CPI report will be followed by producer prices data on Thursday.

Shares in Apple Inc ( AAPL ) had a lackluster day on

Monday, closing up just 0.04% after earlier falling almost 2% as

it unveiled its artificial intelligence-boosted

iPhone 16

.

The eleven major S&P 500 industry sectors closed higher,

with consumer discretionary leading gains, up 1.63% followed

closely by industrials, which added 1.56%. The

smallest gainer was communications services, which

added 0.04%.

Apple's ( AAPL ) long-awaited phone launch came hours after

Chinese rival Huawei began racking up orders for its

tri-fold Mate XT phone.

Boeing ( BA ) shares advanced 3.4% after the planemaker and

its biggest union reached a tentative deal covering more than

32,000 workers, averting a possible strike.

Shares in Palantir ( PLTR ) rose 14% and Dell Technologies ( DELL )

added 3.8% on the news issued late Friday they will

join the S&P 500 index on Sept. 23.

In the benchmark index, these stocks will replace American

Airlines Group ( AAL ), which added 3.9%, and Etsy ( ETSY ),

which fell 1.6% and Bio-Rad Laboratories, which closed

down 2% on the day.

On U.S. exchanges 10.75 billion shares change hands

compared with the 10.72 billion moving average for the last 20

sessions.

Advancing issues outnumbered decliners by a 2.16-to-1

ratio on the NYSE where there were 258 new highs and 111 new

lows.

On the Nasdaq, 2,548 stocks rose and 1,616 fell as

advancing issues outnumbered decliners by a 1.58-to-1 ratio. The

S&P 500 posted 27 new 52-week highs and 4 new lows while the

Nasdaq Composite recorded 45 new highs and 177 new lows.