U.S. stocks rose Monday as investors grew more confident that the Federal Reserve is finished raising interest rates. The S&P 500 gained 0.6%, while the tech-heavy Nasdaq composite advanced 0.8%. The Dow Jones Industrial Average added about 150 points, or 0.4%.
Treasury yields fell across the board, with the benchmark 10-year note slipping to 4.46%. That marked a continued retreat from recent highs above 4.7%. Lower yields typically support stock valuations, particularly for growth-oriented technology companies.
The market’s mood brightened after recent data pointed to cooling inflation and a softening labor market. Traders now see a high probability that the Fed will hold rates steady at its next policy meeting in December. Fed funds futures show little chance of another hike before year-end.
In corporate news, Nvidia agreed to acquire Hugging Face, a platform for hosting and sharing artificial intelligence models. The deal, whose terms were not disclosed, strengthens Nvidia’s position in the fast-growing AI software ecosystem. Analysts see the purchase as a strategic move to expand beyond chip sales into developer tools.
Hugging Face holds a central role in the open-source AI community, with thousands of models used by startups and large enterprises. Nvidia’s acquisition could integrate those models more directly with its own hardware and software stacks. The move follows a series of AI-related investments by the chipmaker this year.
Energy stocks lagged as oil prices slipped on demand concerns. Crude futures fell about 1%, dragging down shares of major producers. Defensive sectors like utilities and consumer staples posted modest gains, reflecting a cautious but optimistic tone.
The rally was broad, with more than three-quarters of S&P 500 companies closing higher. Small-cap stocks also outperformed, suggesting investors are willing to take on more risk. The session’s advance builds on last week’s gains, which pushed major indexes to their strongest weekly performance in months.
Looking ahead, investors will focus on upcoming inflation data and retail sales figures due later this week. Those reports could shape expectations for the Fed’s next move. For now, the market appears to be betting that the tightest policy cycle in decades is drawing to a close.
