Precise Investors Editorial Team
The Dow Jones Industrial Average gained 49.23 points, or 0.11%, to 45,883.45, the S&P 500 added 30.99 points, or 0.47%, to 6,615.28 and the Nasdaq Composite rose 207.65 points, or 0.94%, to 22,348.75
The three major U.S. stock indexes closed higher on Monday with the S&P 500 and the Nasdaq notching intraday record high closes, as investors await the central bank’s policy meeting later this week.
Tesla shares jumped 3.6% after regulatory filings revealed CEO Elon Musk had acquired nearly $1 billion worth of the electric vehicle maker’s stock on Friday. And Google parent Alphabet hit a record high and moved past $3 trillion in market cap.
The FOMC meeting on September 16 and 17 looms large over sentiment this week with market participants widely expecting a 25-basis-point cut following recent economic data indicating labour market weakness.
The market is counting on sort of a goldilocks scenario where the employment market is just weak enough to prompt the central bank to start a rate cutting series, not just one, without disrupting overall growth, according to Carol Schleif, Chief Investment Officer at BMO Family Office. I think the markets will be disappointed if the bank doesn’t give some hint that they intend to continue rate cuts.
Traders on Monday are pricing in a 96% chance of a 25-basis-point cut at this week’s meeting.
Tesla’s gains boosted the S&P 500 consumer discretionary sector 1.1% to its highest level in almost nine months. Alphabet helped lift the communication services sector up 2.33%.
Nvidia slid 0.04% after China’s market regulator said it will continue an investigation into the AI chip leader after preliminary findings showed it had violated China’s anti-monopoly law.
The Dow Jones Industrial Average gained 49.23 points, or 0.11%, to 45,883.45, the S&P 500 added 30.99 points, or 0.47%, to 6,615.28 and the Nasdaq Composite rose 207.65 points, or 0.94%, to 22,348.75.
U.S. stock indexes had logged weekly gains in the previous session, with the Nasdaq and the S&P 500 hitting intraday record highs on Friday as technology-linked stocks remained resilient.
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