The S&P 500 and Nasdaq Composite closed at fresh records as Nvidia lifted tech stocks and investors looked ahead to the Federal Reserve’s interest rate decision.
The broader market index advanced by 0.26%, closing at 5,360.79, while the Nasdaq Composite gained 0.35% to end at 17,192.53. The Dow Jones Industrial Average added 69.05 points, or 0.18%, ending at 38,868.04.
Nvidia shares added roughly 0.8% as the stock’s 10-for-1 spilt took effect. Meta Platforms jumped nearly 2%, pushing the S&P 500 tech sector about 0.3% higher.
The Fed’s latest rate decision and May’s consumer price index slated for Wednesday could be key tests for markets, especially after Friday’s strong jobs report continued to suggest the central bank could hold off on lowering rates.
Investors will parse through the Fed’s updated projections on the timing and frequency of rate cuts. Markets are now pricing in just one rate cut this year, coming in November, according to the CME FedWatch Tool.
But Sam Stovall, chief investment strategist at CFRA, said inflation is still lingering at elevated levels, causing lasting concerns among investors.
“For me, the big worry is that the Fed has not gone far enough for long enough,” he told CNBC in a recent interview. “I think that at least is going to keep us sort of range bound, and probably stop the markets going much further in the near term.”
In fact, in the next few weeks, Stovall sees the market pulling back at least 5% in a mild correction.
