U.S. stocks end mostly higher after final-hour rally as investors await Trump’s ‘liberation day’ tariffs

U.S. Stocks End Mostly Higher After Final-Hour Rally as Investors Weigh Economic Data and Fed Outlook

Wall Street closed mostly higher on Monday, as a late-session rally helped lift major indexes despite lingering concerns over interest rates and economic growth. The S&P 500 gained 0.3%, while the Dow Jones Industrial Average rose 0.2%. The Nasdaq Composite led the way with a 0.5% gain, driven by strength in the technology sector.

Final-Hour Surge
After a choppy trading session, stocks turned positive in the final hour as investors rotated into technology and consumer discretionary stocks. Investors appeared to take a cautious yet optimistic stance ahead of key economic reports due later this week, including fresh inflation data and Federal Reserve commentary.

Economic Data and Federal Reserve Outlook
The market remains fixated on the Federal Reserve’s next move, with investors closely watching economic indicators for signals on whether policymakers will maintain higher interest rates for an extended period. A report from the Commerce Department showed that consumer spending remained resilient, though signs of cooling inflation provided some hope that the Fed may hold off on further rate hikes.

Fed Chair Jerome Powell is set to speak later this week, and analysts are parsing recent statements from Fed officials for any indications on the central bank’s policy direction. While some policymakers have suggested that rates may stay elevated through 2025, market expectations remain divided on the possibility of rate cuts later in the year.

Sector Performance
Technology stocks led Monday’s rally, with gains in major names such as Apple, Microsoft, and Nvidia. The semiconductor sector also saw strong performance, rebounding after last week’s pullback. Meanwhile, energy stocks lagged as crude oil prices dipped amid demand concerns. Financials posted modest gains as Treasury yields steadied following last week’s volatility.

Looking Ahead
Investors are now bracing for a series of key reports, including the latest Consumer Price Index (CPI) and Producer Price Index (PPI) readings, which will provide further insights into inflation trends. Corporate earnings season is also on the horizon, with major banks set to report results later this week.

While market sentiment remains cautious, the final-hour rally on Monday suggests that investors are still willing to take on risk amid an evolving economic landscape. As earnings reports and economic data roll in, traders will be watching closely for signs of strength or weakness in the broader economy.