Wall Street is poised for potential record highs as trading begins this week. The S&P 500 index rose 0.4%, inching closer to its all-time high set last week. The Dow Jones Industrial Average gained 26 points, or 0.1%, while the Nasdaq composite increased by 0.8%, reaching its own record.

Tesla's stock led the gains, climbing 2.8% after CEO Elon Musk purchased approximately $1 billion in shares through a trust. This purchase may indicate Musk's confidence in the electric vehicle company, which has seen a slight decline in stock price this year. Alphabet, Google's parent company, also contributed to the S&P 500's rise with a 3.4% increase, pushing its market value above $3 trillion. Only Nvidia, Microsoft, and Apple share this valuation.

The Federal Reserve's upcoming interest rate decision on Wednesday is the week's main event. Analysts widely expect the Fed to announce its first rate cut of the year, which could stimulate the slowing job market. The stock market has already surged on the assumption that a rate cut is imminent. There are also expectations that the Fed will continue to lower rates through the end of this year and into 2026. However, if the Fed does not cut rates as aggressively as anticipated, it could lead to a market downturn.

Fed Chair Jerome Powell's comments during the press conference following the decision will be closely watched, as will the Fed's updated projections for interest rates and economic growth. Concerns about inflation, exacerbated by tariffs imposed by President Donald Trump, are keeping the Fed cautious. Lower interest rates could fuel inflation, which has struggled to remain below the Fed's 2% target.

Trump has been vocal about his desire for rate cuts, criticizing Powell and referring to him as “Too Late.” On social media, Trump urged, “‘Too Late’ must cut interest rates now, and bigger than he had in mind.”

In corporate news, TKO Group, the owner of the UFC, saw its stock rise 2% after announcing a $1 billion stock buyback plan. Intel's shares increased by 3.2% after the company reduced its expense forecast following the sale of a majority stake in its Altera business.

Conversely, Hain Celestial's stock plummeted 24.4% after reporting a larger quarterly loss than the previous year. Interim CEO Alison Lewis acknowledged the company's performance has not met expectations and stated they are taking steps to stabilize sales. Alaska Air Group's stock fell 5.3% due to high fuel costs and operational challenges, although it noted strong demand for premium seats.

Nvidia's stock dipped 0.4% after China announced an investigation into the company for potential antitrust violations, though no penalties were mentioned.

In the bond market, Treasury yields continued to decline, with the yield on the 10-year Treasury falling to 4.03% from 4.06% late Friday. Economic data released Monday indicated a contraction in manufacturing activity in New York state, contrary to expectations for growth. The next significant economic report will be released Tuesday, detailing consumer spending at U.S. retailers.

Internationally, France’s CAC 40 index rose 0.9%, while other European and Asian markets showed more modest movements.