Wall Street Rally Continues, Energy Prices Rise

Wall Street is prepared to extend a rally that began last week as a result of data suggesting sluggish wage growth in the US, which is one of the objectives of the Federal Reserve in its efforts to rein down decades-high inflation.

The S&P 500 futures increased by 0.5%, while the Dow Jones industrials' futures rose by 0.3%.

After the government's jobs data revealed that salaries nationally increased 4.6% in December from a year earlier, the weakest growth since two summers ago, the four major U.S. indices increased by more than 2% on Friday. Economists had anticipated a pick-up in wage growth. The report also demonstrated that hiring across the board is still going strong.

Stephen Innes of SPI Asset Management says that despite the ups and downs, "investors may continue to accept weak data, especially if signals of decreasing wage inflation continue." Any evidence from the statistics that the Fed would halt its cycle of monetary tightening could increase calls for a softer landing, which might be best for stocks.

The Federal Reserve raised its benchmark overnight rate from almost zero at the beginning of last year to a range of 4.25% to 4.50%. After four consecutive rate hikes of 0.75 percentage points, it reduced the most recent rate increase to 0.50 percentage points as a result of recent indicators of cooling in the inflation rate. A more typical increase of 0.25 points from the Fed  at its meeting next month appears to be priced in by the markets.

Past rate hikes have already inflicted pain in areas of the economy that do best when rates are low, such as housing and high growth sectors like tech.

Gains in technology shares Monday boosted benchmarks in Asia, where Japan's markets were closed for a holiday.

A Chinese financial news outlet cited a top central bank official as saying that China's more than two-year crackdown on internet companies is nearly finished.

Caixin quoted Guo Shuqing, the Communist Party secretary of the People's Bank of China as saying the government would support companies in the sector in creating more jobs and competing globally.

E-commerce giant Alibaba's Hong Kong-traded shares jumped 8.7% and technology and entertainment company Tencent's climbed 3.6%.