U.S. stocks advanced Monday, marking a second consecutive day of gains as investors navigated mixed economic signals ahead of the Federal Reserve’s policy meeting.

The S&P 500 rose 0.6%, the Dow Jones Industrial Average added 0.9%, and the Nasdaq Composite edged up 0.3%. Investors remained cautious but optimistic, positioning ahead of the central bank’s interest rate decision later this week.

The S&P 500 increased by 36.18 points to close at 5,675.12. The Dow climbed 353.44 points, ending at 41,841.63. The Nasdaq gained 54.58 points, finishing at 17,808.66. The Russell 2000 index of smaller companies outperformed, rising 1.2% to 2,068.33.

Despite these gains, the broader market remains under pressure. Year-to-date, the S&P 500 is down 3.5%, the Dow has fallen 1.7%, the Nasdaq is off 7.8%, and the Russell 2000 has dropped 7.3%.

Investors Eye Fed Meeting

Markets are keenly awaiting the Federal Reserve’s upcoming decision on interest rates. While no change is expected, investors will closely analyze Fed Chair Jerome Powell’s comments for signals on the future path of monetary policy. A more dovish tone could fuel further gains, while any hawkish remarks might prompt a selloff.

Monday’s economic data presented a mixed picture. The U.S. Commerce Department reported that retail sales rose just 0.2% in February, missing expectations of a 0.7% increase. The weaker-than-expected figures suggest potential headwinds for consumer spending, which is a key driver of economic growth.

Corporate Movers

Several high-profile stocks made significant moves. Intel surged 6.8% after naming Lip-Bu Tan as its new CEO. Investors are optimistic about his leadership, expecting it to improve the company’s competitive standing in the semiconductor industry.

Enphase Energy jumped 9.8% following the launch of its latest electric vehicle chargers in Europe. The expansion is expected to strengthen its position in the growing EV infrastructure market.

On the downside, Tesla fell 4.8% after Mizuho analysts cut their price target on the stock. Concerns over weakening demand and challenges in the Chinese market weighed on sentiment, raising questions about the company’s near-term growth prospects.

Commodities and Bonds

Gold prices hovered near $3,000 per ounce as geopolitical tensions continued to drive demand for safe-haven assets. The precious metal remains a key hedge against uncertainty, attracting investors amid ongoing global risks.

Oil prices edged higher, with West Texas Intermediate crude rising 0.5% to $67.50 per barrel. The increase followed U.S. airstrikes against Yemen’s Houthi movement, stoking concerns about potential supply disruptions in the Middle East.

The bond market showed little movement, with the yield on the 10-year Treasury note holding steady at 4.3%. Traders are waiting for the Fed’s policy announcement before making any significant moves, as the decision could shift expectations for future interest rate cuts.

Market Outlook

Looking ahead, traders will closely monitor the Federal Reserve’s guidance and any developments in U.S. trade policies. These factors will likely influence market sentiment in the coming weeks.

Monday’s stock market gains reflect cautious optimism, but mixed economic data and geopolitical risks continue to pose challenges. As the Fed’s policy meeting approaches, volatility is expected to remain elevated.