In late afternoon trading on Monday, the stock market bounced back from earlier losses, with the S&P 500 and Nasdaq Composite turning positive while the Dow Jones Industrial Average slipped slightly. The Dow climbed around 0.1%, while the S&P 500 and Nasdaq rose about 0.2% and 0.3% respectively. These gains came after a relatively quiet week for the three major indexes.

Apple's ongoing Worldwide Developers Conference (WWDC) unveiled a new feature that caught investors' attention: tap to cash. Apple promoted this feature as a fast and private way to make payments by holding two phones together. However, the news impacted PayPal's shares negatively, as the popular payment platform owns Venmo.

Investors have their eyes on the Federal Reserve this week, particularly on the release of their interest rate decision and the updated economic forecasts in the Summary of Economic Projections. Market expectations are that policymakers will dial back their forecasts, especially after recent readings on inflation and a stronger-than-expected labor market report for May. Former Kansas City Fed President Esther George predicts that the median projection of policymakers could show a reduction to just one interest rate cut for the year 2024.

Southwest Airlines saw a surge in its stock price on Monday, jumping as much as 8%, following a disclosure by activist investor group Elliott Investment Management that they hold a $1.9 billion stake in the company. Elliott criticized Southwest's leadership for poor execution and urged for a shake-up in management. The airline has faced challenges due to ongoing safety issues with Boeing, resulting in slower growth projections.

Nvidia, the artificial intelligence giant, began trading on a 10-for-1 stock split basis on Monday. The split makes the stock more accessible to retail traders, and historically, companies that split their stocks tend to outperform the market in the year following the announcement. Nvidia's stock is up approximately 27% since the split was announced on May 22. The company's market valuation briefly surpassed $3 trillion, making it the second-most valuable publicly traded US company, just behind Apple.

In the retail sector, JPMorgan has named Walmart as its top play in an uncertain election season. The retailer has demonstrated a strong balance of defense and offense, which JPM analyst Chris Horvers believes will help navigate the softening consumer backdrop. Walmart's recent shareholder meeting, where it welcomed Chipotle's CEO to its board, has also boosted investor confidence.

Despite the anticipation of the Federal Reserve's policy decision and key inflation data, US stocks opened lower on Monday. The Dow Jones Industrial Average hovered just below the flatline, while the S&P 500 and Nasdaq Composite fell around 0.2% and 0.3% respectively.

As the market continues to navigate various factors, including the outcome of the Federal Reserve's decision and ongoing economic uncertainties, investors remain vigilant to potential shifts in the financial landscape.