US stocks edged higher on Monday as investors prepared for a week packed with critical economic data that could influence whether, and by how much, the Federal Reserve adjusts interest rates at its next policy meeting in a week.The S&P 500 rose 0.3%, hovering just below the record level it reached last week. The Dow Jones Industrial Average was up 11 points, or less than 0.1%, while the Nasdaq composite added 0.6% in early trading as of 9:35 a.m. Eastern time, AP reported.AppLovin and Robinhood Markets led gains after the companies were named to join the S&P 500 index later this month, along with Emcor Group. Many investment funds directly track the S&P 500 or compare their performance against it, so stocks joining the list of the 500 largest US companies often attract immediate investor attention. AppLovin climbed 10.8%, Robinhood jumped 11.9%, and Emcor added 0.4%.These three companies will replace MarketAxess Holdings, Caesars Entertainment, and Enphase Energy, which were demoted to the SmallCap 600 index after their market capitalisation fell. The affected stocks slipped between 0.1% and 2.3%.Shares of EchoStar surged 20.5% after it announced a $17 billion deal to sell spectrum licenses to Elon Musk’s SpaceX, comprising $8.5 billion in cash and $8.5 billion in stock. SpaceX will also make approximately $2 billion in interest payments on EchoStar debt through November 2027.Trading across the broader market remained relatively quiet as investors awaited upcoming economic releases that could shift expectations on monetary policy. Currently, traders are forecasting that the Fed will cut its main interest rate for the first time this year at its meeting two Wednesdays from now.Investors generally welcome such rate cuts, which can boost economic activity and lift asset prices, but they can also stoke inflation pressures. So far this year, the Fed has been more concerned about inflationary risks, particularly those linked to President Donald Trump’s tariffs, than about the job market. However, recent reports suggesting a slowdown in the US labour market may be influencing policymakers’ views.On Tuesday, the US government is expected to release preliminary revisions of job growth numbers for the period through March, potentially indicating weaker hiring than initially reported. Inflation reports are scheduled for Wednesday and Thursday, covering both wholesale and consumer price movements. A sharper-than-expected rise in prices could constrain the Fed’s ability to cut rates, forcing officials to weigh the relative urgency of supporting employment against controlling inflation, since tools available generally influence one area at the expense of the other in the short term.In the bond market, Treasury yields continued to ease amid high expectations of a rate cut. The 10-year Treasury yield fell to 4.05% from 4.10% late Friday and from 4.28% last Tuesday.Global markets also moved higher, with indexes across Europe and Asia posting gains. Japan’s Nikkei 225 climbed 1.5% following Prime Minister Shigeru Ishiba’s announcement that he intends to resign, prompting a leadership election in the ruling Liberal Democratic Party. Analysts noted that the resignation was widely anticipated and generally welcomed, although uncertainty remains until a successor is chosen and approved by parliament. Ishiba will remain in office until the transition is formalised.Also on Monday, Japan’s Cabinet Office revised its estimate for first-quarter fiscal growth, reporting an annualised 2.2% rise in GDP, up from the earlier 1.0% estimate. The upgrade was driven by stronger consumer spending and inventory accumulation, highlighting resilience in the Japanese economy despite ongoing global uncertainties.
