US stock markets closed higher on Monday as megacap tech shares drove gains in the S&P 500 and Nasdaq, buoyed by a pause in US Treasury yields. Investors are gearing up for a pivotal central bank week, with the Federal Reserve expected to cut rates by 25 basis points at its final policy meeting of the year.
The Nasdaq Composite rose 1.24% to 20,173.89, and the S&P 500 climbed 0.38% to 6,074.12. Meanwhile, the Dow Jones Industrial Average dipped 0.25% to 43,717.85.
Bitcoin surged to a new record, trading above US$106,000 following remarks by President-elect Donald Trump about potentially creating a bitcoin strategic reserve. Ethereum also rose 4.94% to US$4,046.40.
"The investment environment under a Trump administration is anticipated to be favourable for tech and new-world-type investments," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York.
In economic data, the US PMI report showed accelerated business activity in December, despite persistent manufacturing sector weakness.
Global markets were mixed, with the MSCI gauge of global stocks inching up 0.19%, while the STOXX 600 fell 0.12%. Oil prices dropped, with US crude settling at US$70.71 per barrel and Brent at US$73.81. Gold prices edged higher, with spot gold at US$2,652.29 an ounce.
The Federal Reserve's economic projections, including its dot plot, will be closely watched for cues on the pace of easing in 2025. The dollar hovered near three-week highs as the market braced for the Fed's decision.
