US stocks rally toward more records ahead of pivotal week for Wall Street
NEW YORK AP Stocks are climbing toward more records on Monday ahead of a week packed with potentially market-moving events for Wall Street Related Articles Business People MAC Chair Rick King announces retirement One Tech Tip How to prepare for outages that impact our online lives from banking to chatting apps Real World Economics Argentina bailout is a new level of corruption As Stillwater wrestles with cannabis shop locations what are other east metro cities seeing Eagan Omni Viking Lakes Hotel marks years with expansion plan The S P rose The Dow Jones Industrial Average was up points or as of a m Eastern time and the Nasdaq composite was higher All are adding to their latest all-time highs set on Friday Stocks also rallied in Asia ahead of a meeting on Thursday between the heads of the United States and China The hope is that the talks could clear rising tensions between the world s two largest economies and allow the global business sector to keep motoring U S Treasury Secretary Scott Bessent declared there s a framework for U S President Donald Trump and Chinese leader Xi Jinping to discuss at their meeting while Trump noted We feel good about working things out with China That s just one of numerous things that will need to go right this week in order for the U S stock domain s tremendous record-breaking rally to continue The S P has shot up a stunning since hitting a low in April when worries about Trump s tariffs on China and other countries were at their peak Besides hopes for easing contract tensions the rally has also been built on expectations for several more things to happen One is that the Federal Reserve will keep cutting interest rates in order to give the slowing job sector a boost The Fed s next announcement on interest rates is due on Wednesday and the nearly unanimous expectation among traders is that it will cut the federal funds rate by a quarter of a percentage point for a second straight meeting It s not a certainty though because the Fed has also warned it may have to change lesson if inflation ends up accelerating beyond its still-high level That s because low interest rates can make inflation worse The latest monthly account on inflation came in slightly better than economists expected raising hopes but it may be the final update for a while if the U S cabinet s shutdown continues That could cloud the forecast for cuts to rates to continue Besides low interest rates another expectation that s propped up stock prices is the forecasts that U S companies will continue to deliver solid advance in profits Keurig Dr Pepper climbed Monday after reporting profit for the latest quarter that matched analysts expectations The company behind the Canada Dry and Green Mountain coffee brands announced it benefited from higher prices for K-Cup products among other things Specific of Wall Street s majority influential stocks are also set to review their latest results this upcoming week including Alphabet Meta Platforms and Microsoft on Wednesday and Amazon and Apple on Thursday They ll need to deliver big enhancement and justify big spending that s underway in artificial-intelligence tool Worries have been climbing that AI may be in the midst of a bubble similar to the dot-com bonanza that ended up bursting in In stock markets abroad indexes were mixed in Europe amid mostly modest moves following bigger gains in Asia Stocks rose in Shanghai and in Hong Kong They rose even more in Tokyo where the Nikkei jumped and in Seoul where South Korea s Kospi rallied In the bond sector the yield on the -year Treasury was holding steady at where it was late Friday AP Business Writers Matt Ott and Elaine Kurtenbach contributed
