US markets today: Wall Street rises on Tesla rally ahead of Fed meeting; Fed rate cut expectations drive gains

US stocks climbed on Monday, with the S&P 500 inching closer to fresh all-time highs, as Tesla shares surged and investors positioned for the Federal Reserve’s key policy meeting later this week.

Tesla gained 7.2% after CEO Elon Musk bought about $1 billion worth of shares through a trust, signalling confidence in the electric vehicle maker despite its slight year-to-date losses. The Dow Jones Industrial Average added 43 points, or 0.1%, while the Nasdaq rose 0.5% by 9:35 a.m. Eastern time, AP reported.Gains in Tesla offset a 1.6% fall in Nvidia shares after Chinese regulators accused the chipmaker of violating antimonopoly laws, though no immediate penalties were announced.

Investors are now focused on the Fed’s two-day meeting ending Wednesday, widely expected to deliver the first rate cut of 2025. Market watchers are paying close attention to Fed Chair Jerome Powell’s post-meeting press conference and updated projections for interest rates and economic growth, which could shape investor sentiment in the coming months.Political pressure adds another layer of uncertainty. President Donald Trump intensified his push for aggressive rate cuts, writing on his Truth Social account: “‘Too Late’ must cut interest rates now, and bigger than he had in mind.”

Analysts say Trump’s comments could influence market expectations, even as concerns over inflation and a slowing US jobs market complicate the Fed’s decision-making. Treasury yields fell slightly, with the 10-year note down to 4.04% from 4.06%, reflecting expectations of monetary easing.Globally, France’s CAC 40 rose 1%, while other European and Asian indexes recorded more moderate gains, mirroring cautious optimism ahead of the Fed’s announcement. Analysts warn that higher inflation or a further slowdown in the labor market could curtail future rate cuts, potentially creating volatility for stocks that have already climbed on the assumption of easing.