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US equities have advanced today as investors are gearing up for the Federal Reserve’s policy meeting. The S&P 500 rose 0.4% by mid-morning in New York, nearing another record high. The Nasdaq Composite gained 0.6%, marking its ninth consecutive record close, while the Dow Jones Industrial Average slipped 14 points as the US stock market today witnessed some significant developments.
Tesla shares surged nearly 5% after CEO Elon Musk disclosed a $1 billion stock purchase, his largest open-market buy since 2020. The shift increased investor trust in the electric car manufacturer and broader equity movement. At the same time, CoreWeave benefited through the disclosure of a $6.3 billion order in its current services agreement with NVIDIA.
NVIDIA, however, dropped 1.7% after Chinese regulators accused the company of breaching anti-monopoly laws linked to its 2020 Mellanox acquisition. Other chipmakers, including Texas Instruments and ON Semiconductor, also declined as China opened anti-dumping probes into US analog chips.
Market participants widely expect the Federal Reserve to cut interest rates by a quarter percentage point when it announces its decision on Wednesday. Data showing weaker labor market trends and subdued inflation have strengthened expectations of monetary easing.
According to CME FedWatch data, investors assign a 96% probability to a quarter-point cut. Odds for a steeper half-point reduction remain low at 3.6%. President Donald Trump pressed Fed Chair Jerome Powell to act decisively, urging larger cuts in a social media post. He argued that lower borrowing costs would support the housing market.
Wall Street strategists, however, cautioned that the stock rally could pause after the Fed’s announcement. Analysts at Morgan Stanley, JPMorgan Chase, and Oppenheimer said investors may shift focus to potential economic slowdowns once the policy decision is finalized.
Also read: US Stock Market Today: S&P 500 rises 0.7%, NASDAQ climbs 0.6%, Dow Jones jumps 1.1%
US-China trade negotiations entered a second day, helping to stabilize investor sentiment. President Trump said discussions had progressed positively and hinted at a deal concerning TikTok, without naming the company directly. The US has threatened to ban the app unless an agreement is reached.
The White House also confirmed that Trump will speak with Chinese President Xi Jinping later this week. At the same time, a US delegation is set to arrive in India for trade talks, signaling progress on long-standing differences between the two nations.
Global trade concerns have eased in recent weeks. A Bloomberg index tracking trade uncertainty fell to its lowest level this year. Analysts added that the enhancement of corporate earnings expectations, along with decreased volatility projections, has sustained optimism in US equities.
