Financial Markets                      09/15 15:55

   

   NEW YORK (AP) -- Wall Street rose to more records on Monday at the start of 
a week that could show whether the U.S. stock market's big recent rally has 
been overdone or prescient.

   The S&P 500 climbed 0.5% and topped its prior all-time high, which was set 
last week. The Dow Jones Industrial Average rose 49 points, or 0.1%, and the 
Nasdaq composite added 0.9% to its own record.

   Tesla helped lead the way and rose 3.6% after Elon Musk bought stock worth 
roughly $1 billion through a trust. The electric vehicle company's stock price 
came into the day with a slight loss for the year so far, and the purchase 
could be a signal of Musk's faith in it.

   Alphabet was the single strongest force lifting the S&P 500 after gaining 
4.5%, which brought the total value for Google's parent company above $3 
trillion. Nvidia, Microsoft and Apple are the only other companies on Wall 
Street worth that much.

   The market's main event for the week will arrive on Wednesday. That's when 
the Federal Reserve will announce its latest decision on interest rates, and 
the unanimous expectation is for the first cut of the year. Such a move could 
give a kickstart to the job market, which has been slowing.

   Stocks have already run to records on the assumption that a cut is coming on 
Wednesday, though. Expectations are also high that the Fed will keep lowering 
rates through the end of this year and into 2026. That creates the possibility 
for disappointment in the market, which would mean drops for stock prices, if 
the Fed doesn't end up slashing rates as aggressively as traders expect.

   That's why more attention will be on what Fed Chair Jerome Powell says in 
his press conference following the decision than on the decision itself. Fed 
officials will also release their latest projections for where they see 
interest rates and the economy heading in upcoming years, which could provide 
another potential flashpoint.

   What's keeping the Fed on guard is a possible jump in inflation because of 
President Donald Trump's tariffs. That's because lower interest rates can give 
inflation more fuel and send it even higher. And inflation has already proven 
difficult to get under the Fed's 2% target.

   Another threat for Wall Street is if the job market slows too much. In that 
case, a recession could create a downturn in corporate profits that's steep 
enough to swamp the benefits that lower interest rates bring in the near term.

   Trump, meanwhile, has pushed angrily for cuts to interest rates. He's often 
attacked Powell personally, nicknaming him "Too Late," and is trying to remove 
one of the Fed's governors from its board.

   "'Too Late' must cut interest rates now, and bigger than he had in mind," 
Trump wrote on his social media network Monday, using his trademark all-caps 
style.

   On Wall Street, Intel rose 2.9% after trimming its forecast for expenses 
this year. The move came after it completed the sale of a 51% stake in its 
Altera business to the Silver Lake investment firm.

   That helped offset a 24.7% drop for Hain Celestial, which reported a larger 
loss for its latest quarter than it did a year earlier. Interim CEO Alison 
Lewis said the owner of "better-for-you" brands like Terra chips is making 
moves to stabilize sales "as we recognize our performance has not met 
expectations."

   Alaska Air Group lost 6.7% after the airline said high fuel costs will 
likely cause its third-quarter results to come in at the low end of its 
forecasted range. It also cited higher expenses for overtime pay and 
passengers' compensation after bad weather and air-traffic control issues led 
to difficult operations in the summer, though it saw strong airfare trends 
thanks to demand for premium seats.

   Nvidia edged down by less than 0.1% after China accused the chip company of 
violating its antimonopoly laws. Chinese regulators did not mention a 
punishment for Nvidia in a one-sentence statement on the matter but did say 
they would carry out "further investigation."

   All told, the S&P 500 rose 30.99 points to 6,615.28. The Dow Jones 
Industrial Average added 49.23 to 45,883.45, and the Nasdaq composite climbed 
207.65 to 22,348.75.

   In the bond market Treasury yields eased, continuing their downward run on 
expectations for cuts to rates by the Fed.

   The latest discouraging data on the economy came Monday from a report 
showing manufacturing activity in New York state is shrinking, contrary to 
economists' expectations for continued growth. It's the first month of 
contraction since June.

   The next economic update will arrive Tuesday, when the U.S. government will 
say how much shoppers spent at U.S. retailers last month.

   The yield on the 10-year Treasury fell to 4.03% from 4.06% late Friday.

   In stock markets abroad, France's CAC 40 climbed 0.9%, while indexes moved 
more modestly across the rest of Europe and Asia.

   ___

   AP Writers Yuri Kageyama, Matt Ott and Ken Moritsugu contributed.

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