Stocks Close Higher Ahead of Heavy Earnings Week and FOMC Meeting

Market Performance - The S&P 500 Index rose by +0.63%, the Dow Jones Industrials Index increased by +0.68%, and the Nasdaq 100 Index gained +0.59% on Monday, supported by lower T-note yields and a stronger-than-expected US durable goods orders report, indicating a resilient US economy [1] Trade Uncertainty - Increased trade uncertainty arose after President Trump threatened 100% tariffs on US imports from Canada if Canada signs a trade agreement with China, which may lead Canada to seek other trade partners [2][3] Government Shutdown Concerns - The risk of another partial government shutdown is affecting stock performance, as Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding, following a recent incident involving ICE [4] Currency Movements - The dollar index fell by -0.5% to a 4-month low amid speculation of potential US intervention to boost the yen, aligning with Trump's view that a weak dollar benefits US exports. This decline may also be influenced by Trump's tariff threats, which could lead foreign investors to withdraw capital from the US [5]