S&P 500 tops 6,600, Nasdaq extends record streak as Fed decision nears

US stocks touched new highs on Monday as US-China trade talks unfolded in Madrid and investors awaited a pivotal Federal Reserve meeting later this week.

The S&P 500  rose nearly 0.5% to close above 6,600 for the first time. The tech-heavy Nasdaq Composite  jumped roughly 0.9% to notch its sixth consecutive record close. The Dow Jones Industrial Average  edged up more than 0.1%.

The  major US stock indexes are coming off a strong week in which the Nasdaq and the S&P 500 saw their best weekly showings since early August, while the Dow snapped a two-week losing streak.

Investors are looking ahead to the Federal Reserve's policy meeting Wednesday, with traders pricing in a 96% chance of a quarter-point reduction and 4% odds of a jumbo rate cut as of Monday midday.

An easing could provide another tailwind for stocks, particularly as AI enthusiasm continues to drive market sentiment. Traders will also be watching whether Stephen Miran is sworn in as a Fed governor in time to participate in this week’s FOMC vote.

Meanwhile, US and Chinese officials also met for another round of high-stakes trade talks in Madrid on Monday amid their ongoing trade war.

Treasury Secretary Scott Bessent said the countries agreed on a framework for a TikTok deal ahead of a US ban set to go into effect Sept. 17. Shares of Oracle , the software giant that is reportedly a contender to buy the social media app, jumped.

Elsewhere, Nvidia's  stock fell fractionally, appearing to shake off news that a preliminary probe in China found the AI chipmaker had violated the country's antitrust laws.

Tesla  stock jumped more than 3% to turn positive for the year after news broke that CEO Elon Musk had purchased $1 billion worth of shares.