The Dow Jones Industrial Average closed at a record high on Monday as traders waited for the Federal Reserve’s upcoming decision on interest rates. The Dow rose 0.6% to 41,622.1, while the S&P 500 edged up 0.1% to 5,633.1. However, the Nasdaq Composite fell 0.5% to 17,592.1. Financial and energy stocks led the gains, while technology and consumer sectors were down.
The Federal Reserve’s two-day meeting starts Tuesday, with a decision on interest rates expected Wednesday. There is a 63% chance the Fed will cut rates by 50 basis points, though most analysts expect a smaller 25-point cut. Experts say the economy is strong enough to avoid larger cuts that might signal bigger concerns.
In other news, New York manufacturing activity rose for the first time since November, and crude oil prices jumped 2.7% to $70.47 a barrel due to production disruptions from Hurricane Francine.
Intel shares surged 6.4% after receiving $3 billion in US government funding for a security program. Meanwhile, Apple shares fell 2.8% due to weaker-than-expected demand for the new iPhone 16. Micron Technology also dropped 4.4% after a price target downgrade by Morgan Stanley. Gold and silver prices remained steady.
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