Wall Street Hovers Near Record Highs Amid Rally

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Wall Street Hovers Near Record Highs Amid Rally/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered near record highs Monday as Wall Street’s rally slowed.
The S&P 500, Dow, and Nasdaq inched upward on optimism about Fed rate cuts and trade resilience. Investors balanced gains with concerns over inflation, valuations, and Fed policy risks.

Traders Edward Curran, left, and Robert Charmak work on the floor of the New York Stock Exchange, Wednesday, Sept. 17, 2025. (AP Photo/Richard Drew)

Wall Street Rally + Quick Look

S&P 500 rose 0.2%, Dow up slightly, Nasdaq up 0.3%.
All three indexes on track to surpass Friday’s records.
Stocks surged since April on hopes tariffs won’t derail trade.
Fed rate cuts fuel optimism; more expected later this year.
Inflation remains stubborn, keeping Fed cautious.
Coinbase fell 3.5% after crypto pullback, but up 33% YTD.
Oracle jumped 4% on TikTok deal, new CEO appointments.
Pfizer to acquire Metsera in $4.9B obesity drug deal.
ODP leaped 33% after Atlas Holdings buyout agreement.
Anywhere Real Estate surged 53% after Compass merger news.
Japan’s Nikkei rose 1%, Hong Kong’s Hang Seng down 0.8%.
10-year Treasury yield steady at 4.14%.

Deep Look: Wall Street Holds Near Record Levels as Rally Slows

NEW YORK (AP) — After months of momentum, Wall Street’s record-setting rally showed signs of pausing Monday as U.S. stocks drifted in mixed trading. The S&P 500 rose 0.2%, the Dow Jones Industrial Average ticked up by 8 points, and the Nasdaq Composite gained 0.3%, keeping all three indexes near their all-time highs set on Friday.

Rally Fueled by Optimism

Markets have soared since April, driven by optimism that President Donald Trump’s tariffs will not derail global trade and that the Federal Reserve will continue cutting interest rates to bolster the U.S. economy. The Fed delivered its first rate cut of the year last week and signaled additional reductions are likely before year’s end.

“Every time the market seems to be running out of momentum, it fools most of us by pushing to higher heights,” said Jay Woods, chief market strategist at Freedom Capital Markets.

Risks Ahead: Inflation and Valuations

Despite the rally, investors face lingering challenges. Chief among them: inflation remains above the Fed’s 2% target, creating uncertainty about how aggressively policymakers will cut rates.

A key inflation report due Friday — the Fed’s preferred measure of consumer prices — is expected to show a slight acceleration for last month. Any surprise could rattle markets already considered expensive by many professional investors after months of surging prices.

Big Movers in the Market

Coinbase Global: The cryptocurrency platform fell 3.5%, one of Monday’s steepest declines. Still, the stock remains up 33% year-to-date, boosted by crypto enthusiasm and expectations of looser monetary policy.
Oracle: Shares rose 4% after the Trump administration confirmed Oracle will receive TikTok’s algorithm as part of a deal to maintain U.S. operations. Oracle also named Clay Magouyrk and Mike Sicilia as co-CEOs, with longtime leader Safra Catz becoming executive vice chair.
Pfizer & Metsera: Pfizer announced it will acquire biotech firm Metsera in a deal worth $4.9 billion, targeting a new class of obesity treatments. The price could rise nearly 50% if Metsera secures regulatory approvals. Shares of Metsera surged 62%, while Pfizer added 2.1%.
ODP Corp.: Parent of Office Depot and OfficeMax, ODP jumped 33.2% after Atlas Holdings agreed to buy the company in a roughly $1 billion deal.
Anywhere Real Estate & Compass: Anywhere soared 53.5% after rival Compass announced an all-stock merger, creating a real estate giant valued at $10 billion including debt. Compass shares fell 11.2% on dilution concerns.

Global Markets

Overseas, markets were mixed:

Japan’s Nikkei 225 gained 1%, continuing its 2025 rally.
Hong Kong’s Hang Seng fell 0.8%, reflecting regional economic uncertainty.
European indexes posted minor fluctuations as investors awaited U.S. inflation data.

Bond Market Stability

Treasury yields remained steady, offering stability after recent swings. The yield on the 10-year Treasury held at 4.14%, unchanged from Friday.

What Comes Next

As Wall Street pauses to catch its breath, analysts warn that investor expectations may be too high. If the Fed proves less aggressive on rate cuts, or if inflation surprises to the upside, the rally could stall.

Still, for now, the U.S. stock market remains perched at record levels, buoyed by strong corporate earnings, investor optimism, and a belief that policymakers will keep the economy growing.