Major U.S. indices closed in a mixed fashion on Monday as investors look toward the closely watched Federal Reserve policy meeting, where the central bank is expected to cut interest rates for the first time since 2020.
The S&P 500 gained 0.1% during the regular session, closing at 5,633.09. The Dow advanced 228.30 points, or 0.6%, to 41,622.08, marking a record close. However, the tech-heavy Nasdaq Composite dropped 0.52%, finishing the day at 17,592.13.
Apple shares declined by 2.8%, after Bank of America and JPMorgan analysts suggested that shipping delays for iPhone 16 Pro models could indicate weaker demand than last year.
Financial and energy sectors outperformed the broader market on Monday, both gaining over 1%, while the information technology sector suffered the largest loss, falling nearly 1%.
Semiconductor stocks, including Nvidia, also saw losses, with the AI leader dropping nearly 2%. Broadcom and KLA Corp each fell by 2%, and Marvell Technology slipped by 1.5%.
The Federal Reserve is scheduled to meet on Tuesday and Wednesday, and investors are widely anticipating the first rate cut since the central bank began its hiking cycle in March 2022. A cut this week would be a significant moment for the market, as many hope it will reduce borrowing costs for companies and boost earnings growth.
On the bond markets, 10-year and 2-year rates were at 3.618% and 3.559%, respectively.