US Stocks Close Higher as Markets Anticipate Further Rate Cuts – US Market Wrap

US stocks closed broadly higher on Monday as traders prepared for interest-rate decisions by major central banks around the world later this week.

The S&P 500 increased by 0.4%, while the Nasdaq 100 increased by 1.5%, setting a new record. The 10-year Treasury yield held steady at 4.39%. Bitcoin set a new record.

Sentiment in the United States is relatively positive, with the Federal Reserve’s widely anticipated quarter-point rate cut on Wednesday expected to provide fresh support and extend stocks’ outperformance. This contrasts with losses in Asia and Europe on Monday, which followed weaker-than-expected retail data from China.

Historically, the majority of the stock market’s December gains have occurred in the second half of the month, he said, noting that the S&P 500 has had a positive net return during this period 78% of the time since 1957.

Traders are also analyzing recent economic data. On Monday, data revealed that activity at US service providers is increasing at the fastest rate since October 2021. Meanwhile, a measure of New York state factory activity fell by the most since May.