Nasdaq rises 1% as dip in yields supports megacaps; Nvidia, Palantir drop

US Senate approves bill on climate change, drug costs; Nvidia drops as slump in gaming demand hits Q2 revenue; Tyson Foods down on quarterly profit miss; Palantir drops on forecast cut

The Nasdaq led U.S. stock indexes higher on Monday as a pullback in Treasury yields boosted megacap growth stocks after last week's blockbuster jobs data sparked a tech selloff on expectations of sharp rate hikes by the Federal Reserve.

The focus this week will be on consumer prices data on Wednesday.

The S&P 500 has bounced back 13% from its mid-June lows, but investors fear that signs of persistent inflation this week could further bolster the Fed's case for aggressive monetary policy tightening.

"While it's clear the Fed needs to continue tightening policy, there are still about six weeks until the next meeting