U.S. Stocks Edge Higher as Fed Decision Looms; Nvidia Slips, Oil Gains
U.S. stocks rose slightly on Monday, extending last week’s gains ahead of the Federal Reserve’s key policy meeting.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was up 45 points, or 0.1%. The S&P 500 gained 23 points, or 0.4%, while the NASDAQ Composite climbed 130 points, or 0.6%.
All three major Wall Street indices hit record highs last week, fueled by expectations of a Fed rate cut.
Fed Rate Decision in Focus
Markets are almost certain that the Fed will cut rates when its two-day meeting concludes on Wednesday. Weak labor market signals have boosted expectations for the first cut since the central bank paused easing in December.
A rate reduction could encourage investment and hiring, though it may also raise inflation risks. Last week, consumer prices accelerated slightly due to higher housing and food costs, underscoring sticky inflation. At the same time, rising weekly jobless claims supported expectations for policy easing.
Currently, there is about a 95% chance of a 25-basis-point cut and a 5% chance of a deeper half-point move, according to CME’s FedWatch Tool. Investors will also watch the Fed’s updated projections and Chair Jerome Powell’s remarks for guidance on monetary policy for the rest of the year.
Nvidia Hit by Chinese Probe
Tech stocks were supported by optimism around artificial intelligence. Oracle shares jumped after lifting its cloud revenue forecast and signing new AI contracts.
However, Nvidia stock fell after China’s regulator extended its antitrust probe, citing preliminary evidence of competition law violations.
Other Market Movers
Treasury Secretary Scott Bessent confirmed progress on a framework deal for TikTok in U.S.-China trade talks, paving the way for U.S. ownership.
Tesla shares soared after CEO Elon Musk disclosed the purchase of more than 2.5 million shares, according to a regulatory filing.
Oil Extends Gains
Oil prices moved higher on supply concerns after Ukrainian drone strikes targeted Russian energy infrastructure.
At 09:35 ET, Brent crude futures were up 0.6% at $67.42 per barrel, while U.S. West Texas Intermediate gained 0.8% to $63.20.
Both contracts rose more than 1% last week as strikes hit the Primorsk oil terminal and the Kirishinefteorgsintez refinery, two key Russian facilities. Analysts warn that further disruptions could threaten supply to top buyers such as India and China.
