US Stock Market Surges on Tech Rally and Fed Rate Hike Pause Anticipation

The S&P 500 and Nasdaq closed at their highest levels since April 2022, with gains in Amazon, Apple, and Tesla leading the way. The Federal Reserve's interest rate decision and inflation data for May are expected this week. Traders see a 76% chance of the central bank holding rates at the 5%-5.25% range on Wednesday, while pricing in a 71% chance of a rate hike in July. The rally has recently widened to include more economically sensitive sectors such as energy and industrials, as well as small-cap stocks, as data continues to show a resilient U.S. economy despite higher interest rates.