Stocks Tick Higher After PCE, Fed Cut, Tariffs

U.S. stocks ticked higher Monday, with the S&P 500 up about 0.4%, the Nasdaq roughly 0.5–0.6% and the Dow modestly higher, trimming last week’s losses and approaching recent record highs. Traders took comfort from August’s core PCE — the Fed’s preferred inflation gauge — which rose 0.3% month-over-month and 2.7% year-over-year, broadly in line with forecasts and leaving open the prospect of further Fed cuts after last week’s first easing move. Bond yields rose (the 10-year near ~4.18%), sentiment measures stayed in the neutral zone, and sector action was mixed: chip and cyclical names led gains (Intel rallied) while some retailers swung on newly announced tariffs. Investors are watching this week’s jobs report and the risk of a possible U.S. government shutdown as near-term threats that could inject volatility or delay economic releases. Global markets were modestly positive—Europe, Australia and UAE bourses saw small gains—underscoring a tentative “risk-on” tone tempered by policy and macro uncertainty.