Stocks continued their winning streak, posting gains for the seventh consecutive session as investors remained optimistic about the Federal Reserve's potential rate policy. The tech-heavy Nasdaq Composite rose 0.9%, marking its eighth straight day of gains, while the benchmark S&P 500 edged up by nearly 0.3%. The Dow Jones Industrial Average increased by almost 0.2% or close to 60 points.

Investor confidence was fueled by renewed belief that the Federal Reserve may end its tightening campaign this year, following recent signs of a weaker US economy. The market sentiment has shifted to a more optimistic reading, though cautious voices, including Minneapolis Fed President Neel Kashkari, continue to emphasize the possibility of further rate increases to control inflation.

Despite the positive momentum, investors are advised to exercise caution. Market analysts have warned that there is still a risk of the Federal Reserve raising rates again, dampening the recent euphoria. Chair Jerome Powell is set to speak later in the week, further shaping the market's expectations.

The oil market faced uncertainty as fresh doubts over the Federal Reserve's actions began to emerge. WTI crude prices dropped below $80 a barrel for the first time in over two months, despite the anticipation of supply cuts by Saudi Arabia and Russia. Both West Texas Intermediate crude futures and Brent crude futures sank 4% to $77.48 and $81.76 a barrel, respectively. Contributing to the downward pressure on oil was China's unexpected acceleration in export decline, signaling weakening overseas demand.

In corporate news, WeWork filed for bankruptcy after grappling with expensive leases, leading to a 98% decline in its shares this year. Earnings season continues with reports from Uber and Rivian highlighting Tuesday's docket. The closely watched Disney results are due to be released on Wednesday.

Overall, the benchmark S&P 500 index extended its winning streak, rising nearly 0.3% for the seventh consecutive session. The Nasdaq Composite added 0.9%, notching its eighth straight day of gains, while the Dow Jones Industrial Average increased by 0.17% or almost 60 points. The market's focus remains on the Federal Reserve and its rate policy decisions as investors assess the potential impact on various sectors and economic indicators.