US stocks edged higher on Monday as investors prepared for a week packed with critical economic data that could influence whether, and by how much, the Federal Reserve adjusts interest rates at its next policy meeting in a week.The S&P 500 rose 0.3%, hovering just below the record level it reached last week. The Dow Jones Industrial Average was up 11 points, or less than 0.1%, while the Nasdaq composite added 0.6% in early trading as of 9:35 a.m. Eastern time, AP reported.AppLovin and Robinhood Markets led gains after the companies were named to join the S&P 500 index later this month, along with Emcor Group. Many investment funds directly track the S&P 500 or compare their performance against it, so stocks joining the list of the 500 largest US companies often attract immediate investor attention. AppLovin climbed 10.8%, Robinhood jumped 11.9%, and Emcor added 0.4%.These three companies will replace MarketAxess Holdings, Caesars Entertainment, and Enphase Energy, which were demoted to the SmallCap 600 index after their market capitalisation fell. The affected stocks slipped between 0.1% and 2.3%.Shares of EchoStar surged 20.5% after it announced a $17 billion deal to sell spectrum licenses to Elon Musk’s SpaceX, comprising $8.5 billion in cash and $8.5 billion in stock. SpaceX will also make approximately $2 billion in interest payments on EchoStar debt through November 2027.Trading across the broader market remained relatively quiet as investors awaited upcoming economic releases that could shift expectations on monetary policy. Currently, traders are forecasting that the Fed will cut its main interest rate for the first time this year at its meeting two Wednesdays from now.Investors generally welcome such rate cuts, which can boost economic activity and lift asset prices, but they can also stoke inflation pressures. So far this year, the Fed has been more concerned about inflationary risks, particularly those linked to President Donald Trump’s tariffs, than about the job market. However, recent reports suggesting a slowdown in the US labour market may be influencing policymakers’ views.On Tuesday, the US government is expected to release preliminary revisions of job growth numbers for the period through March, potentially indicating weaker hiring than initially reported. Inflation reports are scheduled for Wednesday and Thursday, covering both wholesale and consumer price movements. A sharper-than-expected rise in prices could constrain the Fed’s ability to cut rates, forcing officials to weigh the relative urgency of supporting employment against controlling inflation, since tools available generally influence one area at the expense of the other in the short term.In the bond market, Treasury yields continued to ease amid high expectations of a rate cut. The 10-year Treasury yield fell to 4.05% from 4.10% late Friday and from 4.28% last Tuesday.Global markets also moved higher, with indexes across Europe and Asia posting gains. Japan’s Nikkei 225 climbed 1.5% following Prime Minister Shigeru Ishiba’s announcement that he intends to resign, prompting a leadership election in the ruling Liberal Democratic Party. Analysts noted that the resignation was widely anticipated and generally welcomed, although uncertainty remains until a successor is chosen and approved by parliament. Ishiba will remain in office until the transition is formalised.Also on Monday, Japan’s Cabinet Office revised its estimate for first-quarter fiscal growth, reporting an annualised 2.2% rise in GDP, up from the earlier 1.0% estimate. The upgrade was driven by stronger consumer spending and inventory accumulation, highlighting resilience in the Japanese economy despite ongoing global uncertainties.

Defence Secretary John Healey has unveiled a new strategy to make defence an “engine for growth” across the UK, promising thousands of jobs and stronger regional economies.

The Defence Industrial Strategy (DIS), launched on a visit to Bristol firm Rowden, will create five new Defence Growth Deals across the UK backed by £250 million over the next five years.

Mr Healey said the plan would make the UK the best place in the world to start and grow a defence company while putting Britain “at the leading edge of innovation”.

He said: “The Defence Industrial Strategy will make defence an engine for growth across the UK, backing British jobs, British industry and British innovators.

“Defence Growth Deals offer a new partnership with UK Defence to build on industrial and innovation strengths that regions already hold.

“Together we aim to drive an increase in defence skills, SMEs (small and medium-sized enterprises) and jobs across all four nations.

“We want to make the UK the best place in the world to start and grow a defence firm and will put Britain at the leading edge of innovation.”

The deals would bring together businesses, local and national government, and academia to foster innovation and drive investment.

Chancellor Rachel Reeves said: “This is a plan for good jobs paying decent wages in Cardiff, Belfast, Glasgow, Sheffield, Plymouth and beyond.

“Through Defence Growth Deals, we will unleash the power of local economies while securing our country – building an economy that works for working people, in every part of this country, just as our Plan for Change promised.”

The Government said early analysis suggests there could be demand for up to 50,000 additional defence jobs by 2034/35 as spending increases.

The first Defence Growth Deals will be in Plymouth, South Yorkshire, Wales, Scotland and Northern Ireland.

Plymouth, home to the largest naval base in Western Europe, will receive investment over the next decade, including in maritime autonomy.

South Yorkshire will see backing for its role in producing specialist materials and components for defence.

Wales will receive support to grow its UAV (unmanned/uncrewed aerial vehicle) sector, while Scotland will see investment across its space, maritime and technology industries.

Northern Ireland, already recognised as a cybersecurity hub, will build on its defence and maritime strengths.

The plan is underpinned by a historic increase in defence spending, which will rise to 2.6% of GDP by 2027, with an ambition to reach 3% in the next Parliament.

The DIS, ministers said, will strengthen the UK’s industrial base and ensure industry can respond rapidly to future challenges, drawing lessons from the war in Ukraine.