Wall Street Surges to New Highs as Fed Rate Call Nears
Markets are almost fully pricing in a 25-basis-point rate cut at the conclusion of the Fed’s two-day meeting on Wednesday.
Quick overview
- Wall Street closed higher on Monday, with all major benchmarks reaching record highs ahead of the Federal Reserve's policy decision.
- Tech stocks, particularly Alphabet, Tesla, and Oracle, saw significant gains driven by optimism around artificial intelligence.
- Markets are anticipating a 25-basis-point rate cut from the Fed, influenced by softer labor market data and inflation concerns.
- President Trump proposed changing U.S. corporate reporting from quarterly to semiannual to reduce costs and improve management focus.
Wall Street closed higher on Monday, with all three major benchmarks sitting at record highs as investors brace for the Federal Reserve’s policy decision later this week.
Gains in Google parent Alphabet, Tesla, and Oracle stood out in a session marked by optimism around tech and artificial intelligence. The Dow Jones Industrial Average edged up 0.1% to 45,884.19, the S&P 500 rose 0.5% to 6,617.71, and the Nasdaq Composite climbed 0.9% to 22,348.75.
Fed in the Spotlight
Markets are almost fully pricing in a 25-basis-point rate cut at the conclusion of the Fed’s two-day meeting on Wednesday—the first since December’s pause. Softer labor market data and a drop in New York’s Empire State manufacturing index to 8.7 from 11.9 have bolstered the case for easing.
Still, last week’s uptick in consumer prices, driven by housing and food costs, has raised concerns about lingering inflationary pressures. Analysts see a 95% chance of a quarter-point cut and a slim 5% chance of a deeper 50-basis-point move. Investors will also scrutinize updated Fed projections and Chair Jerome Powell’s remarks for clues on the path of policy through year-end.
Trump Floats Corporate Reporting Shake-Up
Separately, President Donald Trump suggested shifting U.S. corporate reporting requirements from quarterly to semiannual filings, arguing the change would cut costs and allow management to focus more on running businesses.
Stock Movers
- Alphabet (Google) surged 4.3%, crossing a $3 trillion market cap for the first time, lifted by AI optimism and a favorable antitrust ruling.
- Oracle jumped 3.4% after raising its cloud revenue outlook and announcing major AI infrastructure deals, fueling hopes that corporate investment in AI will keep powering tech growth.
- Tesla also gained, contributing to the Nasdaq’s outperformance.
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