Wall Street gains despite mixed outlook on Fed hike

Treasury prices rose Monday, leading yields to fall by the largest amount in nearly two months, after tepid inflation data cast doubt on expectations of an imminent interest-rate hike by the Federal Reserve.

"The US released a critical piece of macroeconomic data, FED's favorite measure of inflation, the PCE, explained Valeria Bednarik, chief Headline Personal Consumption Expenditures came in at an annualized 0.8% in July, but below a previous reading of 0.9%. Core PCE increased 1.6% compared to a year before, beating expectations for  a 1.5% print Personal Spending and Income matched expectations, at 0.3% and 0.4% respectively."

Financial stocks took Wall Street high despite the lack of inflation that came through today's data that has put the expectations of a rate hike from the Fed this September into question. The Dow Jones Industrial Average finished higher by 107.59 points, or 0.6%, at 18,502.99, while the S&P 500 Index closed higher by 11.34 points, or 0.5%, at 2,180.38, with the financials up 1%. Finally, the Nasdaq Composite Index  rose 13.41 points, or 0.3%, to close at 5,232.33.