U.S. stocks rebounded from an early dip on Monday as investors looked ahead to remarks from several Federal Reserve officials and a key inflation report for insights into the future of interest rate cuts.
After opening in negative territory, the S&P 500 gained approximately 0.2%, and the tech-focused Nasdaq Composite rose 0.3%. The Dow Jones Industrial Average remained largely unchanged. The market’s recovery follows a strong week for equities, buoyed by the Federal Reserve’s recent shift toward an easing policy.
Investors are keenly awaiting Friday’s Personal Consumption Expenditures (PCE) price index, the Fed’s preferred measure of inflation. Wall Street anticipates the report will show that while price pressures persist, they are manageable enough to keep the central bank on its current path. A lower-than-expected inflation reading could increase the probability of another quarter-point rate cut in October.
Further guidance is expected from a packed schedule of Fed speakers this week, including Chair Jerome Powell on Tuesday and newly appointed governor Stephen Miran on Monday.
In commodities, gold soared to a new all-time high above $3,750, driven by bets that the Fed will implement two more rate cuts before the end of 2025. Conversely, Bitcoin and other cryptocurrencies plunged after traders liquidated more than $1.5 billion in bullish positions.
Markets were also assessing the potential impact of the Trump administration’s latest immigration policy. On Friday, the administration announced a new $100,000 annual fee for H-1B work visas, prompting companies like Microsoft and Goldman Sachs to issue urgent guidance to employees. Despite the move, megacap technology stocks were mixed in early trading.
In corporate news, shares of weight-loss drug developer Metsera surged over 60% on the announcement that Pfizer will acquire the company in a deal valued at up to $7.3 billion. The acquisition is expected to strengthen Pfizer’s presence in the lucrative obesity treatment market.
Apple stock climbed to its highest level since December, touching over $251 per share after Wedbush raised its price target to $310, citing strong consumer upgrade potential for the upcoming iPhone 17.
Oracle shares dipped more than 1% following a leadership shakeup. The software giant named Clay Magouyrk and Mike Sicilia as new co-CEOs, replacing Safra Catz, who will become executive vice chair. The news overshadowed a separate development in which Oracle agreed to secure and manage a new TikTok algorithm, allowing the social media app to continue operating in the U.S.
Looking ahead, investors will monitor upcoming earnings reports from Micron Technology for an update on AI-driven demand and from Costco for insights into the state of consumer spending.
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