The US markets ended mostly higher on Monday with Nasdaq settling higher over 245 points. The surge by the Nasdaq came amid significant strength among semiconductor stocks, with the Philadelphia Semiconductor Index jumping by 2.1 percent. Broadcom (AVGO) extended the surge seen last Friday, while Micron (MU) also posted a standout gain. Tech stocks benefited from optimism about the outlook for interest rates ahead of the Federal Reserve's monetary policy decision on Wednesday. The Fed is widely expected to continue cutting interest rates, with CME Group's FedWatch Tool currently indicating a 95.4 percent chance the central bank will lower rates by another 25 basis points.
Traders are likely to pay close attention to the Fed's accompanying statement as well as officials’ latest economic projections, including their forecasts for rates. Networking stocks also saw considerable strength, extending a recent upward trend, driving the NYSE Arca Networking Index up by 2.0 percent to a new record closing high. Meanwhile, oil stocks moved sharply lower amid a decrease by the price of crude oil, dragging the NYSE Arca Oil Index down by 2.9 percent. However, the Dow closed lower for the eighth consecutive session, falling to its lowest closing level in almost a month.
Nasdaq rose 247.17 points or 1.24 percent to 20,173.89 and S&P 500 was up by 22.99 points or 0.38 percent to 6,074.08, while Dow Jones Industrial Average fell 110.58 points or 0.25 percent to 43,717.48.
