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US stocks moved into positive territory on Monday, recovering from an early decline as traders looked ahead to upcoming Federal Reserve remarks and key inflation data later in the week.
By mid-morning in New York, the S&P 500 Index added 0.2% to 6,677.37, marking its 28th record close of the year. The NASDAQ Composite gained 0.3% to 22,697.40, while the Dow Jones Industrial Average rose 0.1% to 46,376.38.
Last week, the Federal Reserve cut interest rates for the first time since December, lowering them by a quarter percentage point. Fed Chair Jerome Powell highlighted growing weakness in the labor market as a concern.
Traders now anticipate additional cuts in October and December if economic conditions warrant. St. Louis Fed President Alberto Musalem stated he backed the recent cut as a precaution against labor market risks but cautioned there was limited room for more reductions amid elevated inflation.
Several sectors showed diverging performance. Gold stocks gained strongly, supported by a surge in the metal’s price to a record high. The NYSE Arca Gold Bugs Index rose 1.8%, its highest intraday level in more than thirteen years.
Semiconductor and hardware companies also contributed to NASDAQ gains, while housing and airline shares declined. The Philadelphia Housing Sector Index dropped 1.4%, and the NYSE Arca Airline Index slipped 1.3%, both reaching one-month lows.
Corporate developments also influenced trading. Oracle Corp. advanced after a White House official indicated the company would oversee the creation of a US-based TikTok algorithm as part of an acquisition deal.
Oracle also promoted Clay Magouyrk and Mike Sicilia to co-CEO roles. Pfizer Inc. rose after announcing a $4.9 billion acquisition of weight-loss drug developer Metsera Inc. Meanwhile, Kenvue Inc. shares tumbled following reports of a Trump administration plan linking Tylenol’s active ingredient to autism.
Other notable moves included T-Mobile US announcing leadership changes, Compass Inc. agreeing to merge with Anywhere Real Estate, and ODP Corp. being acquired by Atlas Holdings.
Shares in Porsche AG fell sharply after the company scaled back its electric-vehicle strategy, while Samsung Electronics gained on reports of Nvidia approval for its advanced memory chips.
Overseas, Asian and European markets posted mixed results. Japan’s Nikkei 225 advanced 1%, while Hong Kong’s Hang Seng Index slipped 0.8%. In Europe, Germany’s DAX fell 0.6% and France’s CAC 40 declined 0.5%, while the UK’s FTSE 100 hovered near unchanged levels.
In commodities, gold rose 1.1% to $3,725.76 an ounce, setting a new record. Silver extended its year-to-date gain above 50%. Oil prices edged lower, with West Texas Intermediate crude down 0.3% to $62.50 per barrel. In the bond market, the US 10-year Treasury yield was stable at 4.14%, while the dollar weakened slightly against major peers.
Investors remain focused on the upcoming release of the core Personal Consumption Expenditures (PCE) price index on Friday. Analysts expect the gauge, the Fed’s preferred inflation measure, to increase 0.2% in August, easing slightly from July’s 0.3% rise. The results will help shape expectations for future interest rate decisions.
Also Read: US Stock Market Today: Dow Jones rises 0.7%, NASDAQ falls 0.4%, S&P 500 drops 0.1%, Bitcoin dips 1%
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