U.S. markets ended higher on Monday amid optimism of interest rate cut by Federal Reserve following the weaker than expected U.S. employment data for the month of August released on September 5, 2025. Further, traders await for release of inflation data that could impact the outlook for interest rates. The Labor Department is scheduled to release reports on producer price inflation and consumer price inflation on September 10 and September 11, respectively. The street expects the annual rate of producer price growth in August to come in unchanged from July at 3.3 percent. The annual rate of growth by consumer prices is expected to accelerate to 2. 9 percent in August from 2.7 percent in July, while the annual rate of growth by core consumer prices, which exclude food and energy prices, is expected to hold at 3.1 percent.

On the sectoral front, significant strength has been seen in software stocks, driving the Dow Jones U.S. Software Index up by 1.2 percent. Besides, an increase by the price of gold also contributed to strength among gold stocks, as reflected by the 1.2 percent gain posted by the NYSE Arca Gold Bugs Index.

Dow Jones Industrial Average increased 114.09 points or 0.25 percent to 45,514.95, S&P 500 rose 13.65 points or 0.21 percent to 6,495.15 and Nasdaq climbed 98.31 points or 0.45 percent to 21,798.70.