US stocks rally toward more records ahead of pivotal week for Wall Street
U.S. stocks pushed higher Monday morning, edging toward fresh records at the start of a week packed with potential market movers. By 9:35 a.m. Eastern, the S&P 500 was up 0.8%, the Dow Jones Industrial Average rose 210 points, or 0.4%, and the Nasdaq composite gained 1.3%. All three indexes are extending the all-time highs they set on Friday.
Investors are watching developments on several fronts. Markets in Asia rallied ahead of a Thursday meeting between the leaders of the United States and China, with hopes that renewed dialogue could ease tensions between the world’s two largest economies and support global growth. U.S. officials suggested there is a framework for talks, and the White House signaled optimism about progress.
For the U.S. market’s record-breaking advance to continue, a lot still needs to go right. The S&P 500 has surged roughly 37% since its April low, when concerns about tariffs and trade frictions were peaking. The climb has been fueled by expectations of easing trade strains, supportive monetary policy, and resilient corporate profits.
A key test arrives Wednesday with the Federal Reserve’s policy decision. Traders broadly expect the central bank to cut its benchmark federal funds rate by a quarter percentage point for a second straight meeting to help counter a cooling labor market. It’s not a lock, though: officials have warned they could pivot if inflation reaccelerates, since easier policy can add to price pressures.
Recent inflation data came in a touch better than economists anticipated, offering some relief. However, the flow of economic updates could be disrupted if a federal government shutdown persists, complicating the outlook for additional rate cuts.
Corporate earnings are another pillar supporting equity prices. Keurig Dr Pepper climbed 4.9% after posting quarterly profit that matched analyst expectations, citing benefits from higher pricing on K-Cup products among other factors.
Some of Wall Street’s most influential companies report later this week. Alphabet, Meta Platforms, and Microsoft are slated for Wednesday, with Amazon and Apple on Thursday. Investors will be looking for strong growth and clear evidence that heavy spending on artificial intelligence is delivering results. At the same time, worries are building that parts of the AI trade could be overheating, drawing comparisons to the dot-com bubble that burst in 2000.
Overseas, European markets were mixed after stronger advances in Asia. Stocks rose 1.2% in Shanghai and 1% in Hong Kong. Gains were even larger in Tokyo, where the Nikkei jumped 2.5%, and in Seoul, where South Korea’s Kospi rallied 2.6%.
In bonds, the 10-year U.S. Treasury yield held steady at 4.02%, roughly unchanged from late Friday, as investors await this week’s data and the Fed’s decision.
With monetary policy, corporate earnings, and geopolitical developments all converging, Wall Street is heading into a pivotal stretch—one that could determine whether the latest record run has more room to extend.
