U.S. stocks closed higher on Monday, with the Nasdaq Composite notching a new all-time high as investors brace for a week packed with critical inflation reports that could shape the Federal Reserve’s next policy decision.
The Nasdaq Composite gained 0.45% to finish at 21,798.70, its highest close ever, after touching another intraday record earlier in the session.
The S&P 500 added 0.21% to end at 6,495.15, while the Dow Jones Industrial Average climbed 114.09 points, or 0.25%, to 45,514.95.
Tech stocks led the advance:
Broadcom rose 3%
Nvidia added nearly 1%, trimming part of last month’s sharp losses
Amazon and Microsoft also closed higher
“There continues to be strong momentum for AI spending and infrastructure buildout, and that strength isn’t just limited to the [Magnificent Seven],” said Ross Mayfield, investment strategist at Baird Private Wealth Management. “The broader tech sector is performing very well.”
Attention now turns to two key U.S. inflation readings this week:
Producer Price Index (PPI) for August, due Wednesday morning.
Consumer Price Index (CPI) for August, set for release on Thursday.
These figures follow a weaker-than-expected August jobs report, which raised hopes the Fed will move to cut interest rates at its policy meeting later this month. Market data from CME’s FedWatch tool even suggests a rising probability of a 50-basis-point cut.
Despite record-setting highs, analysts caution that markets could face short-term headwinds. “We’re in something of a catalyst vacuum,” Mayfield noted, adding that with stocks at peak levels during a seasonally weak period, there may be room for a “downside drift.”
For now, all eyes remain on Thursday’s CPI release, seen as the decisive catalyst for the Fed and markets alike.
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