NEW YORK: Wall Street stocks advanced on Monday with the S&P 500 and Nasdaq Composite reaching new all-time highs amid growing anticipation of a Federal Reserve interest rate cut.
Investor optimism was further bolstered by positive developments from US-China economic discussions held in Madrid.
The Dow Jones Industrial Average rose 0.1% to close at 45,883.45, while the broad-based S&P 500 Index gained 0.5% to finish at 6,615.28.
The technology-focused Nasdaq Composite Index surged 0.9% to end the trading session at 22,348.75.
Market movements reflected strong investor expectations that the Federal Reserve will implement its first interest rate reduction of 2025 following its two-day policy meeting concluding on Wednesday.
Art Hogan of B. Riley Wealth Management noted that markets would likely remain in a wait-and-see pattern until the Fed’s official announcement.
Investors are particularly focused on determining whether the central bank will initiate a full cycle of rate cuts or implement only a single reduction.
In parallel developments, senior economic officials from Washington and Beijing announced they had reached a framework agreement to resolve their ongoing dispute concerning TikTok.
Tesla shares jumped 3.6% after CEO Elon Musk revealed he had purchased approximately $1 billion worth of additional shares in the electric vehicle manufacturer. – AFP