Stock indexes closed higher on Monday, with the S&P 500 up 0.26%, Dow Jones up 0.15%, and Nasdaq up 0.44%. Futures for S&P and Nasdaq also rose. The market anticipates weak US labor market data this week may lead to further Fed interest rate cuts. Bond yields fell as a result.

Stock indexes have been rallying for 5.5 months, hitting record highs last week due to strong earnings growth and easing measures. Chipmakers led tech stocks higher on Monday, while energy producers saw losses as WTI crude oil prices dropped over 3%. Gold prices surged to over $3,800 an ounce due to Fed easing expectations and tariff uncertainty.

US Sep Dallas Fed manufacturing activity fell unexpectedly. Fed comments were mixed, with some advocating for rate cuts while others push for a more restrictive stance. A potential government shutdown looms if a spending bill isn’t passed. Rising corporate earnings are positive for stocks, with markets anticipating a 89% chance of a rate cut at the next FOMC meeting.

This week, focus will be on trade news and key economic indicators. Overseas markets had mixed results, with Euro Stoxx 50 and China’s Shanghai Composite up, and Japan’s Nikkei down. Interest rates fell on expectations of weak labor market data. European bonds also saw lower yields. Eurozone economic confidence rose unexpectedly.

Chipmakers like GlobalFoundries and Micron Technology surged, while energy companies like Diamondback Energy and Chevron fell. Merus NV rose over 35% after an acquisition deal, while Robinhood Markets and Western Digital also saw gains. MoonLake Immunotherapeutics dropped over 89% due to disappointing trial data.

Earnings reports for September 30 include Lamb Weston Holdings Inc, NIKE Inc, Paychex Inc, and United Natural Foods Inc. The author did not hold positions in securities mentioned. Information provided is for informational purposes only.

Read more at Nasdaq: Stocks Finish Higher as Bond Yields Slip and Chip Makers Climb