Stability Amid Swings: US Stocks Await Federal Reserve's Interest Rate Decision

US stocks showed steadiness on Monday, amidst concerns about Trump's trade war and upcoming Federal Reserve interest rate decisions. Stock indexes rose slightly following recent declines. Weaker-than-expected retail sales caused temporary shifts in Treasury yields. Investors weigh potential recession risks as markets assess economic signals.

Amidst recent volatility, US stocks stabilized on Monday, although uncertainty looms due to potential Federal Reserve interest rate changes and ongoing trade tensions under President Trump. The S&P 500 edged up 0.2%, as did the Dow Jones and Nasdaq, despite earlier worries that fluctuating policies might dampen spending and economic growth.

Recent data suggest weaker retail sales, especially in automobiles and fuel, which initially boosted Treasury yields before settling. This shift reflects cautious optimism among bond investors about the country's economic resilience, according to analysts like Jennifer Timmerman of Wells Fargo Investment Institute, pointing to moderate economic slowing rather than an impending recession.

Investors remain alert ahead of the Federal Reserve's mid-week interest rate announcement, which is expected to maintain current levels amidst careful consideration of economic conditions. Global markets also saw gains, supported by fortifying numbers from China's manufacturing sector that are critical for reinvigorating consumer expenditure.

(With inputs from agencies.)