U.S. stocks moved mostly higher Monday as investors await the Federal Reserve’s pivotal policy decision later this week and tracked developments in U.S.-China trade negotiations. The S&P 500 rose 0.4% to 6,608, the Nasdaq Composite gained nearly 0.8% to a fresh record high, and the Dow Jones Industrial Average edged up 0.1%.
The gains extend a strong run for equities, with the Nasdaq and S&P 500 logging their best weekly performance since early August. Traders are now pricing in a near certainty of a quarter-point rate cut on Wednesday, betting that looser policy will help sustain momentum, especially in tech shares buoyed by AI and megacap strength.
Market Movers:
- Tesla (TSLA) +5%: Tesla rose after a regulatory filing revealed CEO Elon Musk purchased 2.57 million shares of the company, valued at roughly $1 billion. The stock’s surge helped it turn positive for the year, reinforcing investor confidence in Musk’s commitment to the EV maker.
- Seagate Technology (STX) +3%: Seagate shares traded above $200 for the first time as enthusiasm builds over its new hard disk drives designed for artificial intelligence data centers. Investors view the product as a breakthrough opportunity to capture growth in AI infrastructure spending.
- Intel (INTC) +4%: Intel rose after announcing it had reduced its full-year operating expense target, following the $3.3 billion sale of a majority stake in its Altera programmable chip business to Silver Lake. The move signals progress in Intel’s restructuring and efforts to stabilize its balance sheet.
- Alphabet (GOOGL) +2%: Alphabet extended gains for a third session, becoming the fourth company to cross a $3 trillion market capitalization. The stock’s strength reflects continued optimism over the adoption of its Gemini AI products and cloud business growth.
- Corteva (CTVA) -5%: Corteva fell sharply after reports indicated the seed and pesticide maker is exploring a potential breakup into two separate companies. The news sparked uncertainty about execution risks and the impact of splitting its agriscience operations.
- Nvidia (NVDA) -2% and Texas Instruments (TXN) -1%: Chipmakers slid after reports that Chinese regulators are probing potential dumping of analog semiconductors from the U.S. The investigation raises concerns about retaliatory measures against American tech firms amid ongoing trade frictions.
- AstraZeneca (AZN) -3%: AstraZeneca fell after pausing a planned $272 million investment in Britain and receiving a downgrade from Handelsbanken. The developments fueled worries about slowing international expansion and regulatory headwinds.
Fed Meeting in Focus
The Federal Reserve’s September meeting is the key driver of sentiment this week. Futures markets are pricing in a 96% chance of a 25-basis-point rate cut, with just 4% odds of a larger half-point move. An easing would be the Fed’s first since 2020 and comes as inflation moderates but growth risks, especially in the labor market, start to accumulate. Traders are also watching whether Stephen Miran will be sworn in as a Fed governor in time to participate in the vote, which could influence the pace of future cuts.
For equities, the prospect of lower borrowing costs adds fuel to a rally already propelled by megacap tech and AI enthusiasm. At the same time, bond yields slipped slightly on Monday, with the 10-year Treasury yield easing to just above 4%, reflecting investor positioning ahead of the announcement.
Trade Talks and Corporate Headlines
Markets also reacted to renewed U.S.-China trade negotiations in Madrid. Treasury Secretary Scott Bessent confirmed that both countries reached a framework agreement on TikTok’s U.S. operations, easing fears of a full ban that was set to take effect September 17. While there are few details, the news lifted shares tied to the social media giant’s future, including Oracle, which is seen as a frontrunner to manage U.S. data operations.
Bank of America announced management changes late last week, elevating three executives into key leadership roles. The move has been interpreted as setting the stage for CEO Brian Moynihan’s eventual succession and was received as a vote of confidence in the bank’s long-term stability. Financial stocks overall traded slightly higher in response to the news, reflecting optimism that leadership clarity could help guide the sector through uncertain interest-rate dynamics.
Looking Ahead
Investor attention is firmly on Wednesday’s Fed decision, which will likely set the tone for markets through the fall. A quarter-point cut is all but assured, but the central bank’s guidance on future moves will be key to whether equities can sustain record highs. Meanwhile, trade developments and regulatory risks—particularly around technology—remain in focus, ensuring volatility could spike at any moment. For now, Wall Street is betting that the combination of looser monetary policy and Big Tech strength will keep the rally intact.