Wall Street Inches Higher Ahead of Fed Rate Decision/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks nudged higher Monday morning as investors looked ahead to key economic data that could influence the Federal Reserve’s next interest rate move. The S&P 500 hovered just below its all-time high, with AppLovin and Robinhood surging on news of joining the index. Meanwhile, bond yields declined and global markets mostly gained.
Wall Street Gains: Quick Looks
- S&P 500 up 0.3%, near record high
- Nasdaq leads with 0.6% gain; Dow rises slightly
- AppLovin (+10.8%) and Robinhood (+11.9%) surge on S&P 500 inclusion
- EchoStar jumps 20.5% after $17B SpaceX spectrum deal
- Market awaits U.S. inflation and job growth data
- Traders anticipate first Fed rate cut of 2025
- Treasury yields dip as rate cut bets rise
- Japan’s Nikkei soars after PM Ishiba announces resignation
- Japan’s GDP revised upward to 2.2% annualized growth
Deep Look
Stocks Edge Higher as Wall Street Eyes Fed Rate Cut and Economic Data
NEW YORK — U.S. stocks inched upward on Monday as Wall Street entered a data-heavy week that could shape the Federal Reserve’s next move on interest rates. The S&P 500 rose 0.3%, positioning itself just shy of its all-time high set last week, while the Nasdaq Composite climbed 0.6% and the Dow Jones Industrial Average ticked up 11 points, or less than 0.1%.
Investors appear cautiously optimistic, balancing the possibility of a long-awaited rate cut against potential inflation concerns.
AppLovin and Robinhood Lead the Way
Among the day’s top performers were AppLovin and Robinhood Markets, which both surged after being selected to join the S&P 500 index later this month — a move that often attracts new investor interest as index funds adjust portfolios.
- AppLovin (APP): +10.8%
- Robinhood (HOOD): +11.9%
- Emcor Group (EME): +0.4% (also joining the index)
They will replace MarketAxess Holdings, Caesars Entertainment, and Enphase Energy, all of which are moving to the S&P SmallCap 600 and saw declines ranging from 0.1% to 2.3%.
EchoStar Soars on $17B Deal with SpaceX
EchoStar shares skyrocketed 20.5% after the company announced it would sell spectrum licenses to SpaceX in a massive $17 billion cash and stock deal. As part of the agreement, SpaceX will also cover $2 billion in EchoStar’s debt interest payments through November 2027 — a move investors welcomed as a major liquidity booster.
Key Data Could Shift Fed Outlook
While Monday’s trading was relatively calm, markets are bracing for several major economic reports this week that could heavily influence whether the Federal Reserve chooses to cut interest rates at its September 18 meeting.
Key Upcoming Data:
- Tuesday: Revisions to U.S. job growth data through March
- Wednesday & Thursday: Reports on wholesale and consumer-level inflation
Currently, traders overwhelmingly expect the Fed to announce its first rate cut of the year, but hotter-than-expected inflation numbers could derail that outlook.
“Investors are caught between hopes for stimulus and fear of lingering inflation,” analysts at MarketWatch said.
President Donald Trump’s tariff policies have added to inflationary concerns, though recent employment reports have shown signs of a cooling job market — a shift that may ease pressure on the Fed.
Bond Yields Decline on Rate Cut Expectations
In the bond market, Treasury yields dipped, reflecting expectations that monetary policy may soon ease:
- 10-Year Treasury Yield: Fell to 4.05%, down from 4.10% on Friday and 4.28% last Tuesday
Falling yields typically support stock prices, especially in rate-sensitive sectors like technology and real estate.
Global Markets Mostly Positive
Markets across Europe and Asia ended mostly higher, with notable moves in Japan, where political news and stronger-than-expected economic data lifted sentiment.
Japan Highlights:
- Nikkei 225: +1.5%
- Prime Minister Shigeru Ishiba announces resignation
- Government to hold LDP leadership elections
- GDP revised upward to 2.2% annualized growth for fiscal Q1
The stronger data was driven by consumer spending and inventory build-up, indicating resilience in Japan’s economy despite leadership uncertainty.
You must Register or Login to post a comment.