U.S. stocks reversed course on Monday, climbing into positive territory as Wall Street braces for a week packed with Federal Reserve speakers and a crucial inflation report. Investors are keenly analyzing these signals for clues regarding potential future interest rate cuts.
Key Market Movements
- The Dow Jones Industrial Average (^DJI) hovered near flat after a sluggish start.
- The S&P 500 (^GSPC) gained approximately 0.2%, recovering from initial losses.
- The Nasdaq Composite (^IXIC) jumped 0.3%, building on a strong week driven by investor optimism surrounding the Fed's return to easing monetary policy.
Gold (GC=F) reached a new all-time high, surpassing $3,750, fueled by expectations of two more Fed rate cuts before the close of 2025. Conversely, Bitcoin (BTC-USD) and other cryptocurrencies experienced a downturn as traders liquidated over $1.5 billion in long positions.
Inflation Data and Fed Watch
All eyes are on Friday's release of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation measure. This data will be crucial in assessing the likelihood of another 0.25% rate cut in October. Current expectations are that September's PCE data will indicate persistent, but manageable, price pressures, keeping the Fed on its current course.
Fed Speakers in Focus
Investors will be closely monitoring a series of speeches by Fed officials this week, including Chair Jerome Powell and newly appointed Governor Stephen Miran, a Trump nominee. Miran is expected to elaborate on his policy views during his appearance in New York on Monday, while Powell is scheduled to speak on Tuesday.
Trump's Immigration Policy Impact
The market is also assessing the potential impact of President Trump's latest immigration policy. The administration announced on Friday that U.S. companies will face a $100,000 fee for H1-B work visas. This has prompted concern and urgent communications from major tech companies like Microsoft (MSFT) and Goldman Sachs (GS). Shares of major tech companies showed mixed performance in early trading.