US stock indices open higher on Monday, Dow rises 0.23%, Nasdaq rises 0.57%, S&P 500 rises 0.38%

US stock indices open higher on Monday, Dow rises 0.23%, Nasdaq rises 0.57%, S&P 500 rises 0.38%

US stock indices opened higher on Monday, with the Dow Jones Industrial Average (^DJI) rising by 0.23%, the S&P 500 (^GSPC) climbing 0.38%, and the tech-heavy Nasdaq Composite (^IXIC) gaining 0.57%. This rebound follows a record-setting day on Friday, where stocks clinched a third consecutive day of record-high closes, fueled by optimism about the AI trade and further Federal Reserve (Fed) policy easing .

The market's focus was on Chair Jerome Powell's first speech since the Fed started cutting interest rates again. Investors were eager to gauge Powell's stance on inflation and the potential for additional rate cuts. While the Nasdaq led the gains, driven by Nvidia's (NVDA) announcement of a $100 billion investment in OpenAI (OPAI.PVT), the S&P 500 and the Dow Jones Industrial Average showed more modest gains .

Economic data released on Tuesday indicated that US business activity cooled in September, while prices paid for materials jumped, suggesting that price pressures are persisting. Additionally, gold (GC=F) reached another record high as optimism for Fed rate cuts grew .

The memory chipmaker Micron Technology (MU) is set to report its quarterly earnings after the bell, with analysts expecting a significant increase in sales driven by AI demand. This will be a key indicator for the tech sector .

Investors are also keeping an eye on the potential for a US government shutdown, which could delay the release of the monthly jobs report later in the week. The risk of a shutdown is seen at over 70%, according to Polymarket, which could introduce significant market uncertainty .

Last week, the stock market rebounded after a three-day downturn, driven by the release of the August Personal Consumption Expenditures (PCE) price index and company-specific news. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed with gains, indicating a positive momentum .

Looking ahead, investors will remain attentive to the new tariffs set to take effect on October 1 and the ongoing risk of a US government shutdown. These factors will be critical in shaping the market's direction in the immediate term .