At Monday's close, the three major indices edged up after fluctuations, with the Nasdaq gaining over 0.4% to set a new all-time closing high.

Specifically, the S&P 500 rose 13.65 points, or 0.21%, to 6,495.15. The Dow Jones Industrial Average added 114.09 points, or 0.25%, to 45,514.95. The Nasdaq gained 98.311 points, or 0.45%, to 21,798.699, marking a new closing record after one trading session. The Nasdaq 100 index increased by 109.857 points, or 0.46%, to 23,762.30.

The "Magnificent 7" index of U.S. tech giants rose 0.21%, with most of the seven stocks advancing, driving the broader market. Specifically, Amazon closed up 1.51%, Nvidia and Microsoft rose up to 0.77%, Meta dipped slightly by 0.02%, Google Class A fell 0.32%, Apple declined 0.76%, and Tesla dropped 1.27%.

The stock market gains were primarily fueled by expectations that the Federal Reserve would adopt a more accommodative monetary policy. The yield on the 10-year U.S. Treasury note fell to a five-month low of 4.05%. Markets have fully priced in a 25-basis-point (bp) rate cut at the Fed's FOMC meeting next week, while also anticipating a 10% probability of a 50-bp cut. However, this week's release of the August Consumer Price Index (CPI) and Producer Price Index (PPI) will indicate the Fed's room for rate cuts and support for the job market.

This week, markets will focus on trade or tariff-related news. The probability of a 50-bp rate cut at the September 16-17 FOMC meeting is now estimated at 13%, whereas such a possibility was nearly nonexistent before. After the meeting, the likelihood of another 25-bp cut at the October 28-29 meeting has risen from 54% to 81%. By year-end, markets expect the federal funds rate to drop from the current 4.38% to 3.62%, a total reduction of about 76 bps.

On tariffs, a federal appeals court ruled late last month that Trump overstepped his authority by imposing global tariffs without congressional approval but temporarily kept the tariffs in place, with the case likely to be appealed to the Supreme Court. Bloomberg Economics estimates that if tariffs are implemented as announced, the average U.S. tariff rate would rise to 15.2%, up from the previous 13.3% and well above the 2.3% before the 2024 tariff announcement.