Stocks Jump at Start of Fed Week: Market Update Today

Market Gains Highlight Optimism Amid Trade Talks and Fed Outlook

Stocks experienced a strong performance on Monday, with investors expressing optimism following President Donald Trump's positive remarks on U.S.-China trade negotiations. The market also anticipated the upcoming Federal Reserve meeting, where a potential rate cut is expected to be announced.

At the close of trading, the tech-heavy Nasdaq Composite rose 0.9% to 22,348, while the broader S&P 500 added 0.5% to reach 6,615—setting a new record for closing highs. The blue-chip Dow Jones Industrial Average saw a modest increase of 0.1%, ending at 45,883.

Ongoing Trade Discussions Between U.S. and China

Trade talks between top officials from the United States and China continued for a second day. President Trump shared on his Truth Social account that the "big Trade Meeting … has gone VERY WELL!" In the same post, he mentioned that a deal was reached on a "certain" company that many young people in the country wanted to save, hinting at possible developments involving TikTok.

TikTok’s parent company, ByteDance, had a September 17 deadline to either divest the platform or face a shutdown in the U.S. Trump indicated that he will meet with Chinese President Xi Jinping this Friday to discuss the details of the agreement.

Trump's Comments on Interest Rates Ahead of the Fed Meeting

In addition to the trade discussions, Trump took to social media to express his views on interest rates ahead of the September Fed meeting. He wrote, "'Too Late' MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND. HOUSING WILL SOAR!!!"

According to CME FedWatch, there is a 96% chance that the Federal Open Market Committee (FOMC) will cut rates by a quarter-percentage point. While the odds of a larger half-percentage-point cut have increased slightly over the past month, analysts remain skeptical about a more significant move.

Jonathan Millar, senior U.S. economist at Barclays, suggests that the Fed is likely to proceed with sequential 25 basis-point rate cuts through the end of 2025, with larger cuts being unlikely.

Nvidia Faces Challenges Over Antitrust Concerns

Nvidia (NVDA) shares declined slightly on Monday after China accused the artificial intelligence chipmaker of violating its anti-monopoly law in its 2020 acquisition of Israeli data center solutions provider Mellanox. The results of the preliminary investigation were released as U.S. and Chinese officials began their trade negotiations.

Treasury Secretary Scott Bessent noted that the two countries discussed the "poor timing" of the Nvidia investigation. A spokesperson for Nvidia stated that the company complies with all laws and will continue to cooperate with government agencies evaluating the impact of export controls on competition.

Tesla Surges After Musk’s Major Stock Purchase

Tesla (TSLA) was another standout performer on Monday. The stock initially jumped over 7% before settling to a 3.6% gain after CEO Elon Musk disclosed a major share purchase.

According to a regulatory filing, Musk bought 2.57 million TSLA shares on Friday for approximately $1 billion. This marks his largest insider stock acquisition ever and his biggest purchase since 2020.

In other Tesla news, Wedbush analyst Daniel Ives reiterated his Outperform (Buy) rating and set a $500 price target for the consumer discretionary stock, which represents an implied upside of 22% from current levels.

Ives highlighted that Tesla and Musk are entering a crucial phase of their growth story as the AI Revolution progresses and the Robotaxi opportunity becomes a reality. He also praised Musk’s new pay plan, stating that it confirms his continued leadership at Tesla through at least 2030.