04:56 PM EDT, 06/10/2024 (MT Newswires) -- The S&P 500 and the Nasdaq Composite closed at record highs Monday as markets awaited the Federal Reserve's latest monetary policy decision and inflation reports for May that are scheduled to be released later in the week.

The technology-heavy Nasdaq rose 0.4% to 17,192.5, while the S&P 500 gained 0.3% to 5,360.8. The Dow Jones Industrial Average advanced 0.2% to 38,868. Utilities and energy led the gainers, while financials saw the steepest decline.

The central bank's Federal Open Market Committee is widely expected to hold its benchmark lending rate steady Wednesday, according to the CME FedWatch Tool, which would mark a seventh consecutive pause. The focus, however, will be on policymakers' updated Summary of Economic Projections.

"Indicating three rate cuts as of the March report, with inflation -- and the broader economy failing to evolve as expected -- the committee is likely to materially revise down expectations for rate reductions, with projections expectedly indicating a widening or growing divide between those hopeful of inflation resuming its previous disinflationary path and those underscoring rising risks -- upside risks -- to price pressures," Stifel analysts said in a note to clients on Monday.

In a bid to tame inflation, the FOMC tightened monetary policy by 525 basis points from March 2022 through July 2023, but has since kept interest rates unchanged.

Official data on May consumer inflation in the US are scheduled to be released Wednesday, while the producer prices report is slated for a Thursday release.

The US 10-year yield rose 4.3 basis points to 4.47% Monday, while the two-year rate added 1.5 basis points to 4.89%.

US consumers' one-year inflation expectations fell in May, though their perception that the unemployment rate will rise over the next year increased, the New York Fed said.

West Texas Intermediate crude oil advanced 3.2% to $77.97 per barrel.

In company news, Southwest Airlines ( LUV ) shares jumped 7%, the second-best performer on the S&P 500, after Elliot Investment Management confirmed its roughly $1.9 billion stake in the carrier. The activist investor called for new leadership at Southwest ( LUV ), alongside a broad review of the business.

First Solar ( FSLR ) was among the top gainers on the S&P 500, up 4.7%, as BMO Capital adjusted its price target on the stock to $311 from $224 while keeping its outperform rating.

Huntington Bancshares ( HBAN ) saw the steepest decline on the S&P 500, down 6.1%. The company said it now expects 2024 net interest income to fall 1% to 4% from a year earlier, down from its prior range of 2% fall to 2% growth.

Gold rose 0.1% to $2,326.80 per troy ounce, while silver gained 1.2% to $29.80 per ounce.