S&P 500, Nasdaq hit record highs ahead of Fed meeting; Tesla jumps

The S&P 500 and the Nasdaq hit intraday record highs on Monday, setting a positive tone for a week dominated by the Federal Reserve's crucial policy meeting, while Tesla shares climbed following CEO Elon Musk’s stock purchase.

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The electric vehicle maker jumped 6% to its highest level since late January after regulatory filings revealed Musk had acquired nearly $I billion worth of Tesla’s stock on Friday.

The monetary policy decision from the Fed looms large over sentiment this week with market participants widely expecting a 25-basis-point reduction following recent economic data signaling labor market weakness.

“The discussion will turn to how aggressively the Fed will act, and the market may take its near-term cues from Chairman (Jerome) Powell's press conference,” said Chris Larkin, managing director, trading and investing at E*TRADE from Morgan Stanley.

“Last week's inflation data was mixed, and the Fed may remind everyone that it may be focused on jobs now, but it hasn't forgotten about the other half of its mandate.”

Traders are pricing in a total of 68.6 points in monetary policy easing by end-2025, data compiled by LSEG showed.

Tesla’s gains boosted the S&P 500 consumer discretionary sector 1.7% to its highest level in nearly nine months. Google-parent Alphabet hit a record high and

raced past $3 trillion in market capitalization, lifting the communication services sector.