US stocks saw a positive shift on Monday, with the S&P 500 rising and the Nasdaq Composite inching closer to record highs. This comes as investors prepare for the Federal Reserve's final policy decision of the year, scheduled for later this week.
The Nasdaq Composite surged nearly 1%, driven by strong performances from major tech players like Alphabet and Tesla. The S&P 500 gained 0.4%, while the Dow Jones Industrial Average remained stable after a challenging week.
Bitcoin also reached an all-time high above $107,000, which has positively impacted stocks related to the cryptocurrency sector.
The Federal Reserve's upcoming interest rate decision is being closely watched, with traders pricing in a 97% probability of a 25 basis point rate cut. The more pressing question for investors is whether the Fed will adjust its "dot plot," which previously indicated four additional small cuts in 2025.
Key economic indicators and data on US retail sales for November are also expected this week.
China's retail sales figures fell short of expectations, raising concerns about the strength of the world's second-largest economy. This has exerted downward pressure on oil prices.
Super Micro Computer Inc. faced challenges as its shares plummeted over 6% following its removal from the Nasdaq 100, highlighting the volatility of the tech sector.
The focus remains on the upcoming Fed meeting and its potential implications for both traditional finance and the cryptocurrency landscape.