U.S. Stocks Extend Gains on Monday
(MENAFN) U.S. equities continued their upward momentum on Monday, extending Wall Street's record-setting rally, as a surge in Big Tech stocks pushed the market higher.
The Dow Jones Industrial Average climbed by 66.27 points, or 0.14%, closing at 46,381.54. The S&P 500 gained 29.39 points, or 0.44%, finishing at 6,693.75, while the Nasdaq Composite Index surged by 157.50 points, or 0.7%, to settle at 22,788.98. All three major indexes marked their third consecutive day of record-breaking closes.
Despite the overall market gains, six of the 11 sectors within the S&P 500 ended in negative territory. Communication services and consumer staples saw declines of 0.92% and 0.89%, respectively. On the other hand, technology and utilities led the gains, up 1.74% and 0.92%, respectively.
Nvidia surged 3.93% to a fresh all-time high after unveiling plans to invest up to $100 billion in OpenAI in the coming years. Shares of Oracle also jumped, gaining 6.31%.
Among other tech giants, Apple rose 4.31%, fueled by strong demand for its new iPhones, while Tesla climbed 1.91% amid growing optimism surrounding its self-driving technology and expanding product lineup.
This rally follows a robust week that saw all three major indexes set new all-time highs, with the Russell 2000 small-cap index hitting its first closing record since November 2021.
The surge has been driven by the Federal Reserve's first interest rate cut since December 2024, with futures markets predicting two additional quarter-point reductions by the end of the year, according to the CME FedWatch Tool.
"Unless something goes to hell in a handbasket in the next three months, basically the markets are telling you that they want to work their way higher and will do so by the end of the year," said Sam Stovall, chief investment strategist at CFRA Research.
Looking ahead, investors are focusing on a series of speeches from Federal Reserve officials this week, including Chair Jerome Powell and newly appointed governor Stephen Miran. Miran argued on Monday that rates should be approximately two percentage points lower. Powell is scheduled to speak on Tuesday.
Markets are also bracing for the release of the Fed's favored inflation gauge, the Personal Consumption Expenditures Price Index, on Friday, which could offer further insight into the future direction of U.S. monetary policy.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
