US stocks closed higher with the Nasdaq hitting a record high as investors expected the Federal Reserve (Fed) to soon cut interest rates to support economic growth.
After Friday's weak NFP jobs report, investors are now expecting several rate cuts this year, adding to concerns about the weakening US jobs market.
According to CME FedWatch, traders are expecting at least a 25 basis point cut at the Fed meeting on September 17, with rate futures showing a 10% chance of a 50 basis point cut.
The S&P 500 index rose 0.21% to 6,495.15 points, the Dow Jones strengthened 0.25% to 45,514.95 points, while the technology-focused Nasdaq rose 0.45% to 21,798.70 points.
Investors are also looking ahead to the Bureau of Labor Statistics benchmark reading on Wednesday at 10:00 PM Malaysia time (MYT) and consumer inflation (CPI) data on Thursday at 8:30 PM MYT to assess the state of the US economy and strengthen the case for a larger rate cut.
Meanwhile, shares of Robinhood Markets rose 16% and AppLovin surged 12% after both companies were announced to join the S&P 500 effective September 22.
Conversely, shares of telecommunications companies declined with AT&T and Verizon each down more than 2%, while T-Mobile fell nearly 4%.
Trading volume on US exchanges recorded $16.2 billion, compared to $16.1 billion in the 20-day trading period.
