Stocks edged higher during early trading on Monday as investors brace themselves for the Federal Reserve’s interest rate decision later in the week. The Fed is set to convene on Tuesday and Wednesday, with an announcement due late Wednesday along with a press conference by Fed Chair Jerome Powell.
Futures on the S&P 500 rose 0.2%, while those on the Nasdaq 100 gained 0.3%. Contracts listed on the Dow Jones Industrial Average edged 0.1% higher.
European markets saw plenty of action on Monday, with the Stoxx Europe 600 advancing 0.4% higher during the morning session. Swiss pharmaceutical company Novartis AG reached an agreement to purchase Chinook Therapeutics Inc. for around $3.5 billion, while Teck Resources Ltd. is in talks with Glencore Plc over the potential purchase of the latter’s steelmaking coal business.
Ahead of the Fed’s policy decision, investors will be awaiting the U.S. inflation report set to be released on Tuesday. The report is expected to provide further indication of the likelihood of the Fed implementing a pause to its interest rate hiking agenda.