Wall Street drifts around its records, propped up by hopes for cuts to interest rates

Key Points

• Asian shares mostly rose as investors anticipate potential interest rate cuts by the Federal Reserve, with nearly three reductions being priced before the end of the year.
• Wall Street saw the S&P 500 and Nasdaq composite reach new all-time highs, driven by positive momentum from newly added companies like AppLovin and Robinhood.
• EchoStar's stock surged 19.9% after agreeing to sell spectrum licenses to SpaceX for $17 billion, affecting telecom stocks like Verizon and AT&T negatively.
• Upcoming U.S. economic reports on job growth and inflation later this week could significantly impact market expectations and the Federal Reserve's decision on interest rates.

NEW YORK (AP) — U.S. stocks are drifting near their record levels on Tuesday, as expectations for coming cuts to interest rates by the Federal Reserve continue to support financial markets.

The S&P 500 added 0.1% and was just below its all-time high set last week. The Dow Jones Industrial Average was up 32 points, or 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.2% higher, coming off its own record.

Treasury yields were holding steadier in the bond market following their sharp slide during recent weeks, when expectations cemented that the Fed will cut interest rates for the first time this year at its next meeting in a week.

A series of reports showing the U.S. job market is slowing has traders convinced that the Fed will see it as the bigger problem for the economy now, rather than the threat of inflation worsening because of President Donald Trump’s tariffs. While easier rates from the Fed can give the economy a boost, they can also push inflation higher.

The latest signal on the job market will arrive in less than half an hour, when the U.S. government will release preliminary revisions to hiring numbers for the country through March.

The hope on Wall Street is that it and other economic reports show that the job market is slowing enough to need the help of the Fed through lower interest rates, but not so weak that a recession is coming. Inflation also needs to stay at reasonable levels, even though it looks tough to get below the Fed’s target of 2%. A lot is riding on such a not-too-hot, not-too-cold scenario: Investors have already sent U.S. stock prices to records on expectations that it’s coming.

On Wall Street, UnitedHealth Group climbed 2.9% after saying its executives plan to tell investors and analysts that it’s sticking with its profit forecast for 2025. That helped it trim its loss for the year so far, which came into the day at 36.7%, as insurers across the industry have contended with soaring medical costs.

Fox dropped 5.3% after Rupert Murdoch’s family said they’ve reached a deal on control of the 94-year-old mogul’s media empire after his death. The agreement ensures that there will be no change in direction at Fox News, the most popular network for President Donald Trump and conservatives.

The deal creates a trust establishing control of the Fox Corp. for Lachlan Murdoch, Rupert’s chosen heir who has been running Fox in recent years, along with his younger sisters, Grace and Chloe.

Apple slipped 0.3% ahead of its unveiling of the next generation of iPhones amid a global trade war that’s added a potential price increase to the company’s marquee product.

Nebius Group, a Dutch company working in artificial-intelligence infrastructure, saw its stock that trades in the United States soar 43.9% after it announced a contract to deliver GPU services to Microsoft. The contract could be worth between $17.4 billion and $19.4 billion, and it runs through 2031. Microsoft stock added 0.6%.

In stock markets abroad, France’s CAC 40 rose 0.2% as the market remained relatively calm even though its government is facing a crisis of confidence after legislators voted to oust another prime minister. It and other governments around the world, including the United States, are facing increased scrutiny on how they plan to pay for their spending.

Indexes were mixed across the rest of Europe and in Asia.

Japan’s Nikkei 225 erased early gains to finish 0.4% lower as political uncertainty continued after Prime Minister Shigeru Ishiba said over the weekend that he planned to step down. Who will replace him is still uncertain and may take weeks to decide.

In the bond market, the yield on the 10-year Treasury was holding at 4.05%, where it was late Monday.

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AP Business Writers Yuri Kageyama and Matt Ott contributed.