NEW YORK (Reuters) – The New York Stock Exchange ended higher on Monday, extending its biggest weekly percentage gain of the year, as investors looked ahead to the Democratic National Convention, which will nominate Kamala Harris for president, and the annual Jackson Hole symposium.

All three major U.S. stock indices ended in the green, with the S&P 500 and Nasdaq both posting their eighth consecutive session of gains after a mini-crash two weeks ago triggered by fears of a recession in the U.S. economy.

The Dow Jones index gained 0.6%, or 236.77 points, to 40,896.53 points.

The broader Standard & Poor’s 500 gained 54 points, or 1.0 percent, to 5,608.25 points.

The Nasdaq Composite rose by 245,051 points, or 1.4%, to 17,876,771 points.

Data released last week reassured investors about the risk of recession, reinforcing the hypothesis of a first rate cut by the Federal Reserve at its September meeting, of at least 25 basis points.

“What’s supporting this rally is the hope that the floodgates will remain open and the Federal Reserve will cut rates in September,” said Paul Nolte, senior wealth management advisor and market strategist at Murphy & Sylvest in Elmhurst, Illinois.

“Money is looking for somewhere to go, and it’s heading to the stock markets.”

A slim majority of economists polled by Reuters believe the Fed will make three 25-basis-point rate cuts by the end of the year and that the economy will likely be able to avoid recession thanks to lower inflation.

It is in this context that the Jackson Hole symposium will open on Thursday, with the highly anticipated speech by Fed Chairman Jerome Powell, scheduled for Friday.

“I think (Jerome Powell) will repeat some of the Fed’s language, namely that they are a little more comfortable with the fact that inflation is getting closer to the target (…) and that will be interpreted by the markets as a green light for a rate cut in September,” estimates Paul Nolte.

Before that, the Democratic National Convention, which opens Monday in Chicago, could fuel market volatility, already heightened by low trading volumes at the end of the summer.

In stocks, Advanced Micro Devices gained 4.5% after the chipmaker said it plans to acquire server maker ZT Systems for $4.9 billion to expand its artificial intelligence portfolio and better compete with industry giant Nvidia.

(Stephen Culp, Tangi Salaün)

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