01:37 PM EDT, 05/06/2024 (MT Newswires) -- US equity indexes rose in midday trading Monday, extending gains from last week, as confidence builds in the Federal Reserve's ability to cut interest rates soon.

The S&P 500 rose 0.6% to 5,160.7 with the Nasdaq Composite up 0.7% to 16,271.3 and the Dow Jones Industrial Average 0.3% higher at 38,772.9. Technology and energy paced the gainers among sectors. Consumer staples and real estate were the sole decliners.

All three indexes closed higher last week, with technology posting the biggest gains.

The latter half of last week saw strong gains for most asset classes thanks to a Federal Open Market Committee meeting that avoided hawkish surprises coupled with a softer payrolls report on Friday that reignited hopes of a soft landing for the US economy, according to a note from Deutsche Bank on Monday.

Chicago Federal Reserve President Austan Goolsbee said additional labor market reports such as last Friday's would offer comfort that the US economy isn't overheating, according to a note from Commerzbank. The probability of the FOMC leaving interest rate unchanged in September fell to 35% as of Monday afternoon from 43% a week ago, according to the CME Group's FedWatch Tool.

In company news, Loop Capital adjusted Walt Disney's ( DIS ) price target to $140 from $113. The entertainment giant will release Q2 results on Tuesday. Shares of Disney ( DIS ) rose 2.3% intraday, the biggest gainer on the Dow.

Baird upgraded Micron Technology ( MU ) to outperform from neutral and booted the price target to $150 from $115. Shares of Micron jumped 4.8%, among the top performers on the S&P 500 and the Nasdaq.

The US 10-year Treasury yield slipped 1.1 basis points to 4.49% while the two-year rose by less than one basis point to 4.82%.

Gold rose 1.1% to $2,333.30 an ounce, and silver jumped 3.5% to $27.63.

West Texas Intermediate crude oil rose 0.3% to $78.31 a barrel.