All three major indexes reversed earlier losses on Monday as investors braced for a Federal Reserve policy decision and key inflation data in the week ahead. The Dow Jones Industrial Average climbed around 0.1%, coming off a muted end to a winning week for the three major gauges. The benchmark S&P 500 and tech-heavy Nasdaq Composite each rose about 0.2% and 0.3%, respectively.
Trader expectations for a cut in September have fallen, while those for November have risen, according to the CME FedWatch tool. Read more: How does the labor market affect inflation? Investors are now looking ahead to the Fed's next rate decision and May's Consumer Price Index inflation reading, both due on Wednesday, which will provide another big test for stocks. Investors have also kept a watchful eye on potential fallout from political upsets in Europe.
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