Traders on the trading floor of the New York Stock Exchange on August 4, 2022.
Source: New York Stock Exchange
Stocks ended little changed on Monday as another rise in interest rates kept investors from making major moves ahead of key U.S. inflation data.
this Dow Jones Industrial Average It fell slightly by 11.24 points or 0.03% to close at 38,892.80 points.this S&P 500 Index It fell 0.04% to close at 5,202.39. at the same time, Nasdaq Index It closed slightly up 0.03% to 16,253.96 points.
Tesla The company’s shares rose 4.9% after Chief Executive Musk said the company’s robotaxis would be launched in early August.
Rising U.S. Treasury yields dampened market gains. The benchmark 10-year Treasury note rate climbed about 4 basis points to 4.42%.
To gain further insight into the Fed’s success in fighting inflation, investors are eagerly awaiting March consumer and producer price index data due later this week. March CPI data is also closely watched to determine when the central bank will start cutting interest rates.
Economists polled by Dow Jones expect CPI data due to be released on Wednesday morning to have risen 0.3% last month.
“The theme of bad news being good for stocks continues,” said Matt Rowe, head of portfolio management at Nomura Capital Management. “The strength in stocks is largely driven by hopes of an implicit rate cut or a series of rate cuts this year, which It doesn’t reduce the cost of capital and the present value of everything.”
The 30 stocks in the Dow Jones Industrial Average posted their worst weekly performance since March 2023 last week. The S&P 500 fell nearly 1% in the period, its biggest weekly loss since early January.
However, the market did end the week on a positive note following Friday’s stronger-than-expected jobs report. The stunning job gains have raised hopes among investors that a strong economy can continue to support corporate earnings growth, even if it means interest rates will stay on for longer.
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