U.S. equity markets closed in positive territory on Monday, with both the S&P 500 and Nasdaq achieving intraday record highs, as traders and investors turned their full attention to the upcoming Federal Open Market Committee meeting. The market is highly attuned to a potential rate cut, anticipated to be 25 basis points, as recent labor data has shown signs of cooling across employment indicators.
Tesla provided a significant boost to market sentiment after it was revealed the CEO had purchased nearly $1 billion worth of company shares, leading to a 3.6% jump in Tesla stock. Alphabet also made headlines by pushing past the $3 trillion market cap mark—setting a new benchmark for communication services—contributing to broader sector gains.
Investor sentiment is also shaped by expectations that the Fed will act in response to weakening pressure in the labor market. With markets pricing in overwhelming odds for a rate cut, sectors tied to consumer discretionary and communications saw modest advances. Tesla’s gain pushed up consumer discretionary, while Alphabet’s strength benefited communication services. In contrast, Nvidia edged down slightly amid the continuation of an antitrust probe by Chinese regulators, dampening some tech optimism.
The major indexes reflected these trends: the Dow posted a small uptick, while the S&P 500 rose by nearly 0.5% and the Nasdaq climbed close to 1%. Trading volume exceeded recent averages, and the number of stocks reaching new highs outpaced those hitting new lows by a substantial margin. Non-tech giants, though still contributing to the overall advance, lagged sectors driven by innovation and growth.
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