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Updated at 9:35 a.m. ET/1335 GMT
By Shubham Batra and Shashwat Chauhan
Sept 9 (Reuters) - Wall Street's benchmark indexes rose on Monday, rebounding from a week of heavy losses as investors remained optimistic about a soft landing scenario for the U.S. economy ahead of a crucial inflation report later in the week.
Most megacap and growth stocks rose after falling sharply last week, with Tesla TSLA.O and Nvidia NVDA.O adding more than 3% each.
Major chip stocks, which also saw heavy selling last week, regained some ground with the Philadelphia Semiconductor Index .SOX up 1.8% after tumbling more than 4% on Friday.
Ten of the 11 major S&P 500 sectors were trading higher, with consumer discretionary .SPLRCD and information technology .SPLRCT rising more than 1% each.
Global markets were rattled last week as uncertainty over the U.S. economy's health rippled across assets, adding fuel to an already volatile period that has investors grappling with a shift in the Federal Reserve's policy and worries over stretched valuations.
Friday's weaker-than-expected August jobs data spurred worries on economic growth, driving the Nasdaq Composite .IXIC to its worst week since January 2022, while the S&P 500 .SPX saw its biggest weekly drop since March 2023.
Markets will be squarely focused on U.S. consumer prices data on Wednesday that 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%.
Ronald Temple, chief market strategist at Lazard said that while the inflation battle is fully won, "it appears safe to say that the Fed should feel comfortable that inflation is sufficiently under control to begin moving monetary policy in a less restrictive direction."
The report will be followed by producer prices data on Thursday.
Money markets currently see a 73% chance of a 25-basis-point rate reduction by the Fed week and expect a total monetary easing of 100 bps by the end of the year, according to CME's FedWatch Tool.
Debate between Democrat Kamala Harris and Republican Donald Trump on Tuesday - the first time ahead of the presidential election on Nov. 5 - will be closely eyed by the investors.
At 09:35 a.m. ET, the Dow Jones Industrial Average .DJI rose 199.46 points, or 0.47%, to 40,535.85, the S&P 500 .SPX gained 46.00 points, or 0.85%, to 5,454.42 and the Nasdaq Composite .IXIC gained 185.94 points, or 1.11%, to 16,876.78.
Among individual movers, Boeing BA.N advanced 3.3% after the planemaker and its biggest union reached a tentative deal covering more than 32,000 workers, averting a possible strike.
Eli Lilly LLY.N climbed more than 1% after the drugmaker appointed insider Lucas Montarce as its chief financial officer.
Dell Technologies DELL.N and Palantir PLTR.N rose 5.2% and 9.9% respectively, while Erie ERIE.O climbed 3.1% as they are set to join the S&P 500 index on Sept. 23.
These companies will replace American Airlines Group AAL.O, Etsy ETSY.O and Bio-Rad Laboratories BIO.N, respectively, in the index.
Advancing issues outnumbered decliners by a 1.88-to-1 ratio on the NYSE and by 1.72-to-1 ratio on the Nasdaq.
The S&P 500 posted four 52-week highs and one low, while the Nasdaq Composite recorded 12 highs and 59 lows.
(Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Sherry Jacob-Phillips and Maju Samuel)
((Shubham.Batra@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))