Markets on Fire! Alphabet Ignites Record-Breaking Tech Surge as Wall Street Holds Its Breath for Fed Decision

Wall Street was electrified on Monday, sending two of its main indexes to dizzying new heights as a tech-led rally swept through the market. Investors, buoyed by progress in U.S.-China trade relations, pushed stocks higher ahead of what could be a landmark week for U.S. monetary policy.

The day's trading session ended with historic milestones:

• Nasdaq Composite: The tech-heavy index soared by 0.9%, closing at an all-time high.
• S&P 500: The broad market benchmark climbed 0.5%, also securing a new record close.
• Dow Jones Industrial Average: The blue-chip index posted a more modest gain of 0.1%, ending the day just a stone's throw from its own record.

This powerful surge, which builds on last week's impressive gains, was spearheaded by tech titans like Alphabet. The sector's strong performance signals a growing appetite for risk among investors, who appear to be betting heavily on a more accommodative financial environment.

The elephant in the room is the Federal Reserve's two-day policy meeting, which kicks off this week. Market consensus is reaching a fever pitch, with traders and analysts overwhelmingly confident that the central bank will announce its first interest rate cut of the year on Wednesday. This expectation isn't just wishful thinking; it's backed by recent economic data.

Last week's reports showed that while consumer inflation ticked up in August, it didn't exceed forecasts. More significantly, wholesale prices actually declined, giving the Fed ample justification to lower borrowing costs. A 25 basis point cut is now widely seen as a done deal.

However, the rate cut itself may not be the biggest story. The real market-moving event will be the subsequent press conference with Fed Chair Jerome Powell. Investors will be dissecting his every word, searching for clues about the central bank's future path. Is this a one-and-done cut, or the beginning of a sustained easing cycle? The answer to that question will likely determine whether this record-breaking rally has the fuel to continue its climb.