The US financial market has reached new peaks ahead of the Federal Reserve’s upcoming decision regarding interest rates.

The S&P 500, which reflects the stock performance of 500 major publicly traded companies, saw a 0.3 percent rise on Monday, closing at 5,360.79.

The Nasdaq Composite Index, heavily influenced by tech giants like Apple and Microsoft, increased by 0.4 percent, reaching 17,192.53.

Diamond Offshore Drilling and Southwest Airlines were notable individual gainers in the market, with increases of 10.9 percent and 7 percent, respectively.

For the major technology firms, Microsoft, Amazon, and Nvidia ended the day up by 0.95 percent, 1.5 percent, and 0.75 percent respectively.

Apple experienced a 1.9 percent decline after its long-anticipated launch of new AI features did not meet investor expectations.

Tesla, whose shareholders will vote on Thursday about approving an unprecedented $56 billion compensation package for CEO Elon Musk, saw its shares drop by 2.08 percent.

The Federal Reserve is largely expected to maintain steady interest rates on Wednesday, with analysts closely monitoring its statements for policy direction insights.

The US central bank has kept the benchmark rate between 5.25 percent and 5.5 percent since July 2023, marking the highest level in over twenty years.

After its last meeting on May 1, the Fed noted a "lack of further progress" in driving inflation towards its 2 percent target.