The S&P 500 and the Nasdaq Composite rose on Monday as investors waited for the outcome of the US Federal Reserve’s two-day meeting later this week.
At the time of writing, the S&P 500 index was 0.4% higher, and the Nasdaq Composite was up 0.8% from the previous close.
The Dow Jones Industrial Average was largely flat.
The US Fed will begin its two-meeting on Tuesday.
The market expected the US central bank to cut interest rates by 25 basis points.
“If so, that would mean the Fed has cut by 100 basis points this year, or more accurately, since September.
This is short of 150 points priced in at the beginning of the year, yet it has still provided a strong tailwind for equities in 2024,” David Morrison, senior market analyst at Trade Nation, said.
As things stand, the Fed is forecast to cut by a further 50 basis points next year, although much depends on inflation resuming its previous downward trend.
According to the CME FedWatch tool, traders have priced in a 99.1% probability of the US central bank cutting rates by 25 bps this week.
Super Micro Computer plunges
Shares of server maker Super Micro Computer tumbled nearly 14% on Monday.
The fall came after a Bloomberg report claimed that the company has hired investment bank Evercore to potentially help raise equity and debt capital.
The markets were concerned that the stock might be delisted by the Nasdaq after missing deadlines to file its quarterly and financial reports.
CEO Charles Liang’s confidence that the stock would not be delisted seemingly did little to assuage these fears.
The company now has until February to file its outstanding reports.
Shares of Super Micro were last trading around 28% higher for the year.
Broadcom Inc surges
Shares of the chipmaker continued to surge on Monday.
Monday’s rise added to gains from last week that helped the stock to hit over $1 trillion market capitalisation for the first time ever.
Broadcom’s rise comes after the company reported an increase in artificial intelligence-related revenue on Friday, on the heels of better-than-expected earnings results.
Meanwhile, shares of tech companies such as Apple, Tesla and Google-parent Alphabet all traded higher.
Shares of NVIDIA Corporation, however, fell 2% on Monday.
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