Dow, S&P 500 look to add to record highs

U.S. equity markets ticked higher Monday morning as traders looked ahead to the Federal Reserve’s policy decision due on Wednesday.

The Dow Jones Industrial Average was higher by 97 points, or 0.3%, while the S&P 500 and the Nasdaq Composite advanced 0.08% and 0.05%, respectively. Both the Dow and the S&P 500 closed at record highs on Friday as inflation fears sent the 10-year yield to a 13-month high of 1.62%.

Investors will be paying close attention to Wednesday’s Fed decision and will be on the lookout for any commentary surrounding how the central bank could respond should the unprecedented amount of fiscal and monetary stimulus bring back inflation that has been missing since the 2008 financial crisis.

Looking at stocks, Boeing Co. shares were on track for a fifth straight day of gains, bolstered by last week’s announcement that investment firm 777 Partners ordered 24 737 Max jets and has the rights to purchase 60 additional planes. Shares have surged 20% during the winning streak.

Airlines were in focus after Transportation Security Administration data showed officers screened 1.36 million passengers at U.S. airports on Friday, the highest single-day total since COVID-19 lockdowns began on March 15, 2020.

Elsewhere, AMC Entertainment Holdings Inc. will begin reopening theaters in Los Angeles beginning on Monday. The company hopes to have all 56 of its California locations by Friday.

Meanwhile, DraftKings Inc. announced plans for a $1 billion convertible note offering. The sports-betting platform plans to use the proceeds for general corporate purposes, including mergers and acquisitions and products or technology investments.

In commodities, West Texas Intermediate crude oil fell 76 cents to $64.85 per barrel and gold rallied $9.80 to $1,729.60 an ounce.