Investing.com -- U.S. stocks closed higher Monday as investors paused for breath near record levels ahead of a slew of more signals from the Federal Reserve this week.
The 30-stock Dow Jones Industrial Average traded 0.15%, higher, the benchmark S&P 500 gained 0.28%, while the tech-heavy NASDAQ Composite rose 0.14%.
Optimism over interest rate cuts in the wake of the Federal Reserve's outsized reduction drove the S&P 500 and the Dow Jones Industrial Average to record highs last week. While the NASDAQ Composite also gained, recent weakness in technology stocks kept the index well below lifetime highs.
Fed cues, PCE inflation on tap this week
A string of Fed officials and members of the rate-setting committee are set to speak this week - most notable Chair Jerome Powell on Thursday.
The central bank cut interest rates by 50 basis points last week, marking the beginning of an easing cycle that could see rates fall by as much as 125 bps this year.
While the move had pushed Wall Street to record highs, overall gains were limited, given that the Fed held a less dovish medium to long-term outlook.
The central bank signaled neutral rates were likely to be much higher than those seen in the past.
The pace of the Fed’s easing cycle is also expected to depend largely on the U.S. economy.
The PCE price index - the Fed’s preferred inflation gauge - is due Friday, and is set to offer more cues on interest rates. Inflation is still trending well above the Fed's 2% annual target.
Ahead of that, investors will be watching Monday for economic activity data on the service and manufacturing sectors, while US House Republicans have unveiled a new plan that would keep the government funded for three months and avoid a partial shutdown.
Apollo to invest in Intel?
In the corporate sector, Apollo Global Management has offered to make an investment of up to $5 billion in beleaguered chipmaker Intel (NASDAQ:INTC), according to Bloomberg News. Intel stock rose by more than 1%.
The asset manager indicated that it would be willing to make an equity-like investment in Intel, the Bloomberg report said, with top management of the chipmaker considering the offer.
Intel is struggling with a sharp decline in sales, and has previously outlined a series of cost-cutting measures, including reducing headcount by as many as 15,000 employees.
(Peter Nurse, Scott Kanowsky and Ambar Warrick contributed to this article.)