Stock Market Update: S&P 500 Holds Gains Above 5700

U.S. stocks closed higher on Monday as investors took a moment to reflect near record levels ahead of significant signals from the Federal Reserve expected this week.

The Dow Jones Industrial Average increased by 0.15%, the S&P 500 rose by 0.28%, and the tech-heavy NASDAQ Composite added 0.14%.

Optimism surrounding potential interest rate cuts following the Federal Reserve’s substantial reduction last week propelled the S&P 500 and the Dow Jones Industrial Average to record highs. The NASDAQ Composite also saw gains, but recent weakness in technology stocks kept it below its previous all-time highs.

### Fed Cues and PCE Inflation on the Horizon

Numerous Fed officials and members of the rate-setting committee are scheduled to speak this week, with Chairman Jerome Powell being a key figure to watch on Thursday.

The central bank cut interest rates by 50 basis points last week, signaling the start of an easing cycle that could see rates decrease by as much as 125 basis points this year. While this move pushed Wall Street to record levels, the overall gains were tempered by the Fed’s more cautious medium to long-term outlook, suggesting that neutral rates could be significantly higher than in the past.

The trajectory of the easing cycle is expected to be closely tied to economic conditions in the U.S. The PCE price index, the Fed’s preferred measure of inflation, is set to be released on Friday and may provide additional insights into future interest rate moves. Current inflation levels remain above the Fed’s 2% annual target.

Before that release, investors will be paying attention to economic activity data from the service and manufacturing sectors. Additionally, U.S. House Republicans have revealed a new plan aimed at maintaining government funding for three months, thus avoiding a partial shutdown.

### Apollo’s Potential Investment in Intel

In corporate news, Apollo Global Management has reportedly offered to invest up to $5 billion in struggling chipmaker Intel. Following this announcement, Intel’s stock rose by over 1%.

Bloomberg reports that Apollo is interested in making an equity-like investment in Intel, with the company’s top management currently considering the proposal. Intel has been facing a significant decline in sales and has already initiated a series of cost-cutting measures, including plans to reduce its workforce by as many as 15,000 employees.

(Note: This article is a summary and may not include all the specifics from the original sources.)