Stocks tick higher as Wall Street drifts near its record levels

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NEW YORK (AP) — Stocks are ticking higher ahead of a week with several data reports that could dictate by how much or even whether the Federal Reserve will cut interest rates at its next meeting in a week. The S&P 500 rose 0.2% and was just below its record set last week. The Dow Jones Industrial Average slipped 46 points, and the Nasdaq composite rose 0.5%. AppLovin and Robinhood Markets helped lead the market after learning they will join the S&P 500 index later this month. Trading across the broader market held relatively steady ahead of several updates coming later this week on the job market and inflation.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Wall Street pointed higher in early trading Monday ahead of two government inflation reports this week that could impact the Federal Reserve's next interest rate decision.

Futures for the S&P 500 and Dow Jones Industrial Average each rose 0.2% before the bell. Nasdaq futures gained 0.4%.

The Fed hasn't touched its benchmark borrowing rate in 2025, in part due to healthy unemployment levels and inflation that remains above its 2% target. Uncertainty over the impact President Donald Trump's tariffs — which most economists say trigger price increases — have bolstered the Fed's position so far this year, despite Trump's calls for a rate cut.

However, recent data have shown a deteriorating labor market and many expect the U.S. central bank to issue a quarter-point cut when it meets next week. Such cuts can give the economy and job market a boost, though they can also accelerate inflation.

That makes tricky work for Fed officials, whose dual mandate is to keep the labor market churning out jobs while making sure prices stay in check.

The Labor Department issues its producer prices report on Wednesday, followed by its consumer prices report Thursday. The Fed meets on Sept. 16 and 17, when it is expected to announce a rate cut.

In equities trading Monday, EchoStar jumped nearly 24% before the bell on news that it had reached a deal to sell $17 billion worth of spectrum licenses to Elon Musk’s SpaceX.

SpaceX and EchoStar will enter into a long-term commercial agreement which will allow EchoStar’s Boost Mobile subscribers to access SpaceX’s next generation Starlink Direct to Cell service.

Late last month, EchoStar shares soared more than 70% in a single day after AT&T said that it will spend $23 billion to acquire wireless spectrum licenses from EchoStar.

Also early Monday, Applovin and Robinhood each soared around 9% after S&P Dow Jones announced the two companies would be joining the S&P 500.

Coming later this week are earnings reports from Oracle and Adobe.

Global shares mostly rose with Japan's benchmark rising despite the looming political uncertainty after Prime Minister Shigeru Ishiba announced last night that he plans to resign.

Analysts said Ishiba's announcement was expected for some time and welcomed it as moving things forward, although uncertainty remains as the ruling Liberal Democratic Party will need to hold an election to choose a new leader. Ishiba will remain prime minister until his successor is chosen and approved by parliament.

“Markets may react short-term to the temporary uncertainty of lame-duck leadership, but this may resolve once a new leader is chosen. Meanwhile, the LDP’s position as a minority leading party is unlikely to change anytime soon, and as such compromise will be the name of the policymaking game,” said Naomi Fink, chief global strategist at Amova Asset Management.

Japan's benchmark Nikkei 225 gained 1.5% to finish at 43,643.81. South Korea's Kospi gained 0.5% to 3,219.59. Australia's S&P/ASX 200 lost 0.2% to 8,849.60.

Hong Kong's Hang Seng edged up 0.9% to 25,633.91, while the Shanghai Composite rose 0.4% to 3,826.84.

Also Monday, Japan's Cabinet Office said the economy expanded at a stronger rate in the fiscal first quarter than previously estimated, at a seasonally adjusted 2.2% annualized rate, better than the earlier 1.0% rate as solid consumer spending and inventories lifted growth more than previously thought.

Japanese auto stocks rallied after the U.S. finalized a trade deal with Japan. Tariffs on Japanese autos surged to 15% from the initial 2.5%, considerably lower than the 27.5% initially discussed.

Toyota stock gained 0.3%, while Nissan stock rose 2.4%. Subaru issues added 1.3%, while Mitsubishi Motors edged up 1.2%.

“The Bank of Japan remained in focus as strong wage data increased expectations for a potential rate hike later this year,” said Bas Kooijman at DHF Capital SA, noting that wages were rising.

In Europe at midday, France’s CAC 40 and Germany’s DAX each rose 0.5%, while Britain’s FTSE 100 was unchanged.