The S&P 500 rose 0.2% on Monday as investors positioned for a data-heavy week, with two closely watched inflation readings due.
The Nasdaq Composite gained 0.5%, supported by technology stocks, while the Dow Jones Industrial Average slipped 66 points, or 0.1%.
Nvidia added 1.5%, partially recovering from losses in recent weeks.
Meta Platforms climbed 1.6%, while Amazon and Microsoft also traded higher, lending support to the broader market.
Investors are awaiting the producer price index for August, scheduled for release on Wednesday, followed by the consumer price index on Thursday.
The data comes after a weaker-than-expected August jobs report, which reinforced expectations that the Federal Reserve could move to cut interest rates at its meeting later this month.
According to trading data from the FedWatch tool, markets have begun to price in the possibility of a half-point reduction in the benchmark rate.
Morgan Stanley strategist Michael Wilson wrote in a Monday note that the weak jobs report supports the view of a transition from “rolling recession to rolling recovery.”
He added that while near-term risks remain tied to monetary policy, the setup could lead to a strong finish into year-end and 2026.
Goldman Sachs sees S&P rallying
Goldman Sachs analysts said in a separate note that “imminent” Federal Reserve interest rate cuts combined with a re-acceleration of growth next year should support further gains in the S&P 500.
The bank’s economists expect three rate cuts over the remainder of this year.
The Fed is widely anticipated to cut borrowing costs by at least 25 basis points at its policy meeting next week, though debate continues around how much easing may follow.
Inflation remains above the Fed’s 2% target, leaving policymakers to weigh progress on prices alongside signs of labour market cooling.
Goldman’s strategists, led by David Kostin, projected that the US economy is likely to avoid a recession, even with the drag from trade tariffs imposed by President Donald Trump.
They noted that the S&P 500 has historically delivered positive returns during Fed rate-cutting cycles when the economy expands.
The analysts forecast that the index could rise 2% through the end of 2025 and another 6% by mid-2026, corresponding to levels of 6,600 and 6,900, respectively.
The S&P 500 ended Friday at 6,481.50, leaving it less than 1% below its recent record high, according to FactSet data.
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