NEW YORK, New York - U.S. stocks rallied on Monday, kicking off the new week in style. The Standard and Poor's 500 closed above 6,600 for the first time, while the Nasdaq Composite also notched up a new alll-time high. The U.S. dollar was sharply lower.

Driving markets Monday were expectations for a quarter-point interest rate cut by the Federal Reserve at the conclusion of its regular two-day meeting on Wednesday, with 96 percent of analysts expecting the move. Four percent are expecting an even higher cut of 0.50 percent.

Wall Street celebrated ahead of time, with technology stocks leading a broad market advance that pushed the Nasdaq Composite to its record closing high. Investor optimism was fueled by renewed confidence in the artificial intelligence sector and news out of China-U.S. trade talks in Madrid that the two economic powers had agreed on a deal to keep Tik Tok in the U.S..

The tech-heavy NASDAQ Composite (22,348.75) was the day's standout performer, surging 207.65 points to achieve a significant gain of 0.94 percent. The rally was largely driven by robust gains in major semiconductor and software companies.

The broader S&P 500 (6,615.28) also posted a solid advance, climbing 30.99 points, an increase of 0.47 percent. The benchmark index closed at a new all-time high, reflecting strength across multiple sectors beyond just technology.

The Dow Jones Industrial Average (45,883.45), which is weighted more toward industrial and financial stocks, saw a more modest gain. It added 49.23 points, rising 0.11 percent, but still managed to secure a record close.

Monday's rally suggests a rejuvenated bullish sentiment among investors. After a period of consolidation, markets appear to be climbing on the back of strong corporate earnings prospects and the prevailing view that the central bank will begin to lower borrowing costs later this year. 

U.S. Dollar Weakens Against Major Peers in Monday Trading

The U.S. dollar faced broad-based selling pressure on Monday, retreating from recent highs as a risk-on mood in equity markets dampened demand for the safe-haven currency. The dollar's decline was most pronounced against commodity-linked currencies and the British pound.

The euro was a notable beneficiary, with EUR/USD climbing to 1.1767, a gain of 0.28 percent on the day. Analysts pointed to a slight easing of immediate regional economic concerns as providing support for the single currency, together with the Federal Reserve's interest rate decision Wednesday.

The British pound outperformed, with GBP/USD jumping 0.37 percent to trade at 1.3607. The commodity-backed Australian and New Zealand dollars also advanced solidly. The AUD/USD pair rose 0.36 percent to 0.6670, while the NZD/USD pair gained 0.30 percent to 0.5970.

The U.S. dollar also lost ground against its Canadian counterpart. The USD/CAD pair fell 0.52 percent to 1.3772. The greenback also softened against the Japanese yen and the Swiss franc, two other traditional safe havens. The USD/JPY pair dipped 0.17 percent to 147.39, and the USD/CHF pair declined 0.19 percent to 0.7942.

The dollar's weakness suggests a shift in market sentiment at the start of the week, with traders showing a slightly higher appetite for risk. Market participants are now looking ahead to key economic data including the Fed's ratye decision for further direction on the pace of future interest rate changes, which continue to be the primary driver of currency valuations.

Global Stock Markets Show Mixed Results in Monday's Trading Session

Global equity markets presented a mixed picture on Monday, with European bourses largely climbing while major Asia-Pacific indices struggled for direction amid a complex interplay of economic data and corporate earnings.

Canada's main stock index joined the North American rally. The S&P/TSX Composite (29,431.02) advanced 147.20 points, a gain of 0.50 percent, supported by strength in materials and tech stocks.

In Europe, the pan-European EURO STOXX 50 (5,440.40) led the charge, posting a solid gain of 49.69 points, an increase of 0.92 percent. France's CAC 40 (7,896.93) matched that performance, rising 71.69 points, also up 0.92 percent. Germany's DAX (23,748.86) advanced more modestly, adding 50.71 points for a 0.21 percent gain.

The UK's FTSE 100 (9,277.03) bucked the continental trend, dipping slightly by 6.26 points, a decline of 0.07 percent. The BEL 20 (4,764.50) in Brussels also finished in negative territory, down 11.18 points or 0.23 percent. Conversely, the broader Euronext 100 (1,634.08) was a standout performer, jumping 17.88 points, a rise of 1.11 percent.

Trading in Asia was more subdued. Japan's Nikkei 225 (44,768.12) continued its strong run, climbing 395.62 points, a gain of 0.89 percent. South Korea's KOSPI (3,407.31) edged up 11.77 points, or 0.35 percent, and Hong Kong's Hang Seng Index (26,446.56) saw a slight increase of 58.40 points, up 0.22 percent.

However, losses were seen across several other major Asian indices. Australia's S&P/ASX 200 (8,853.00) fell 11.90 points, down 0.13 percent, while the broader All Ordinaries (9,120.90) slipped 7.80 points, a drop of 0.09 percent. India's BSE Sensex (81,785.74) retreated by 118.96 points, falling 0.15 percent. Taiwan's TWSE (25,357.16) saw a more significant pullback, dropping 117.48 points for a loss of 0.46 percent.

In other markets, the S&P/NZX 50 (13,208.31) in New Zealand decreased by 19.59 points, down 0.15 percent. The IDX Composite (7,937.12) in Indonesia was a notable gainer, adding 83.06 points for a 1.06 percent increase.

The EGX 30 (35,165.80) in Egypt closed up 54.00 points, a 0.15 percent rise.

Israel's TA-125 (3,114.92) was among the session's weaker performers, falling 17.30 points, a decline of 0.55 percent.

The Top 40 USD Net TRI Index (6,023.29) in Johannesburg gained 20.80 points, up 0.35 percent.