In late afternoon trading on Monday, US stocks experienced a turnaround, with all three major indexes reversing earlier losses and ending the day in positive territory. The Dow Jones Industrial Average (DJI) made a modest climb of around 0.1%, slightly lower than its performance at the end of last week. Meanwhile, the benchmark S&P 500 (GSPC) and tech-heavy Nasdaq Composite (IXIC) each saw gains of approximately 0.2% and 0.3%, respectively.

One standout feature at Apple's (AAPL) WWDC caught investors' attention: tap to cash. This new feature allows users to make quick and private payments to others by simply holding their phones together. The announcement had a negative impact on PayPal (PYPL) shares, as the digital payments company, which owns Venmo, saw a decline in its stock price.

The Federal Reserve's interest rate decision, scheduled for Wednesday, is the center of attention on Wall Street this week. Along with the policy announcement, the Fed will release updated economic forecasts, including the eagerly anticipated "dot plot." Market watchers predict a dialing back of rate hike expectations, with most investors now expecting only one cut for 2024, compared to the previous projection of three cuts. However, former Kansas City Fed president Esther George believes the median among policymakers could drop to just one cut, while some still advocate for two.

Shares of Southwest (LUV) surged by as much as 8% on Monday following the disclosure of a $1.9 billion stake by activist investor group Elliott Investment Management. The group called for a leadership shake-up, citing poor execution and a reluctance to evolve the company's strategy. Southwest has been grappling with the impact of Boeing's ongoing safety issues, which have posed significant challenges for the airline and led to a prediction of slowing growth for the coming years.

Nvidia (NVDA) began trading on a new 10-for-1 stock split basis on Monday. The split made the stock more affordable for retail traders and increased investor interest. Nvidia's total market valuation briefly reached over $3 trillion last week, overtaking Apple as the second-most-valuable US company. The company's stock has skyrocketed due to increasing demand for its hardware in the generative AI space, driven by major players like Amazon, Google, and Microsoft.

US stocks opened the week on a slightly lower note as investors awaited the Federal Reserve policy decision and key inflation data. The Dow Jones Industrial Average hovered just below the flatline, while the S&P 500 and Nasdaq Composite each experienced a decline of around 0.2% and 0.3%, respectively.

JPMorgan has identified Walmart (WMT) as its top retail play in an uncertain election season. The recent addition of Chipotle CEO Brian Niccol to Walmart's board has bolstered confidence in the company's ability to navigate the consumer backdrop. JPM analysts expect Walmart to experience a multi-year double-digit EPS growth trajectory, driven by market share gains and profit opportunities in the international segment.

RBC strategist Lori Calvasina's note is gaining traction in the markets. She emphasizes that market participants may have become overly optimistic about the timing of rate cuts. Calvasina presents different stress test scenarios, one of which projects the S&P 500 at around 4,900, assuming no further Fed moves, stickier-than-expected inflation, and 10-year yields remaining below 5%. Another stress test envisions higher inflation, additional rate hikes, and a 10-year yield surpassing the previous year's peak, resulting in a fair value for the S&P 500 at around 4,500.

Overall, despite the initial losses, the stock market rebounded on Monday, with the S&P 500 and Nasdaq turning positive while the Dow Jones Industrial Average experienced a slight dip. Investors remain focused on upcoming events, such as the Federal Reserve's decision and the continuous impact of technological advancements on key companies.