NEW YORK – U.S. stocks began to rise on Monday early in the week, which could indicate whether Wall Street’s record-breaking rally was over or prescient.
The S&P 500 rose 0.4% and is expected to surpass its latest all-time high, which was set last week. As of 9:35 a.m. ET, the Dow Jones industrial average rose 43 points, or 0.1%, and the Nasdaq Complex was 0.5%.
Tesla helped lead and rose 7.2% after Elon Musk bought about $1 billion worth of shares through a trust fund. The electric car company’s shares have so far fallen to the day, which could be a year’s loss, and the purchase may be a signal of Musk’s confidence in that.
This helped mask NVIDIA’s 1.6% decline after China accused chip companies of violating their antitrust laws. Chinese regulators did not mention the punishment for Nvidia in their single-sentence statement, but did say they would conduct “further investigation.”
However, the main event in the market did not arrive until Wednesday. That’s Fed Its latest interest rate decision will be announced, and the unanimous expectation is that it will announce its first cut for the year. Such a move could kick off the job market, which has been slowing down.
However, stocks have been recorded assuming they were cut on Wednesday. Expectations are also high Fed The rates will be lowered until the end of this year and until 2026. This will disappoint the market, which means if the stock price drops, Fed In the end, there was no aggressive cut as expected by traders.
That’s why more attention will cause Fed Chairman Jerome Powell said in a press conference after the decision that compared to the decision itself. Fed Officials will also release their latest forecasts to understand the interest rates they see and economic development in the coming years, which will be another potential flashpoint.
What might be scared Fed The chance of cutting off more cuts is a leap in inflation. That’s because lower interest rates can make inflation higher and send it higher fuel. Inflation proves difficult Fed 2% target, while President Donald Trump’s tariffs threaten higher.
Another threat to the market is if the job market slows down too much. In this case, the resulting recession could mean that a downturn in corporate profits is enough to overwhelm any benefit-benefited lower rates and lower stocks.
Meanwhile, Trump has been angrily pushing for more interest rate cuts. He often attacked Powell himself, nicknamed him “It’s too late” and worked hard to remove one of them Fed Governor of the Board.
“It’s too late,” Trump wrote on his social media network on Monday. “Interest rates must be lowered and bigger than he misses.”
In the bond market, fiscal yields have fallen slightly, continuing their expectations for tax cuts continue to decline Fed.
The 10-year Treasury yield fell to 4.04% from 4.06% late Friday.
In foreign stock markets, France’s CAC 40 climbed 1%, while the index was more modest in Europe and other parts of Asia.
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AP writers Yuri Kageyama, Matt Ott and Ken Moritsugu contributed.
