Investors Eye Fed Rate Cut Amid Rising Stocks and Market Anticipation

On Monday, the S&P 500 and Nasdaq climbed while the Dow remained flat as investors await the Federal Reserve's interest rate decision. A likely rate cut and strategic market changes, including MicroStrategy's inclusion in the Nasdaq 100, influenced stocks. Key data releases are also anticipated this week.

The S&P 500 and Nasdaq showed modest gains on Monday, with the Dow staying flat, as investors geared up for a significant Federal Reserve interest rate decision anticipated this week. With an over 97% likelihood of a 25-basis point rate cut, market participants are keenly observing potential policy implications.

Market dynamics were further influenced by MicroStrategy's impending inclusion in the Nasdaq 100, driving its stock up by 2.6%. Meanwhile, shifts within the index saw Super Micro Computer shares drop 7.1% as they are set for removal. Honeywell announced potential plans to separate its aerospace business, gaining investor attention.

Cryptocurrency stocks were buoyed as bitcoin surged past $106,000 following President-elect Trump's strategic reserve proposal. Despite some declines, technology and growth stocks generally advanced, propelled by AI advancements and Trump's business-friendly signaling, fueling gains across the markets in 2024.

(With inputs from agencies.)