Stocks rise as Dow attempts to surpass 40,000 once more

US stocks were little changed on Monday after the Dow closed above 40,000 for the first time, as copper prices surged and Nvidia (NVDA) earnings loomed on the horizon.

The S&P 500 rose 0.3%, while the Dow Jones Industrial Average was broadly flat in the wake of the blue-chip benchmark’s all-time high. The tech-heavy Nasdaq Composite stepped up about 0.6%.

Investors are becoming more optimistic that the Federal Reserve will soon cut interest rates, despite words of caution from policymakers. All three major gauges closed at record highs on Friday as appetite for risk rose and Wall Street strategists painted a bullish picture for stocks.

A key question for investors is whether that outlook is sustainable or whether it’s getting ahead of where the Fed is headed. A key test comes on Wednesday, with the release of minutes from the Fed meeting in May.

Appearances on Monday from policymakers could shed light on the debate. Fed official Michael Barr said inflation data has been “disappointing” and indicated rates will have to stay higher for longer.

The market is also bracing for heavily anticipated quarterly results from Nvidia on Wednesday, eyed as a key catalyst for the rally in stocks. Expectations for the AI chipmaker’s earnings and revenue are sky-high — for growth of 400% and 240%, respectively — and the focus is on whether it can again live up to the hype.

Rallies in commodity markets are fueling fears of a knock-on rise for US inflation. Copper prices on the LME topped $11,000 a ton for the first time, soaring to their highest-ever level as a looming supply shortage draws in investors. Gold prices also jumped to tap an intraday record at around $2,450 an ounce.