Today: March 04, 2024
Today: March 04, 2024

S&P, Nasdaq muted as markets brace for inflation data, Fed meeting

Share This
S&P, Nasdaq muted as markets brace for inflation data, Fed meeting
Reuters
Shristi Achar A and Johann M Cherian
December 11, 2023

By Shristi Achar A and Johann M Cherian

(Reuters) - The S&P 500 was muted and Nasdaq inched lower on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about monetary policy easing next year.

The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 hitting its highest intra-day level of the year.

The S&P 500 and Nasdaq also notched their highest closing since early 2022 on Friday, after data showed nonfarm payrolls were higher than expected, underscoring hopes that the world's largest economy could control inflation without slipping into a recession.

Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday.

"Investors are thinking how long this advance will last and if it is the beginning of a new meaningful leg higher," said Sam Stovall, chief investment strategist at CFRA Research.

"The CPI data tomorrow should confirm that the trend in inflation is downward and that the quantitative tightening is causing inflationary trends to decline, while at the same time not throwing us into recession."

While money markets have almost fully priced in a rate-hike pause in the upcoming meeting, bets of a rate cut next year have been seeping in, with traders seeing a 39% chance of at least a 25-basis-point cut in March 2024 and a 71.4% chance in May, according to the CME Group's FedWatch tool.

At 10:19 a.m. ET, the Dow Jones Industrial Average was up 56.84 points, or 0.16%, at 36,304.71, the S&P 500 was up 1.88 points, or 0.04%, at 4,606.25, and the Nasdaq Composite was down 33.78 points, or 0.23%, at 14,370.19.

Elsewhere, the European Central Bank and the Bank of England, among others, are also scheduled to deliver their interest rate decisions later this week.

The tech-heavy Nasdaq was under pressure, with megacaps including Alphabet and Amazon.com shedding over 2% each, while chip makers like Micron Technology and Broadcom cushioned losses, adding 2% and 4%, respectively.

Limiting losses on the blue-chip Dow, Nike added 1.4% after brokerage Citigroup upgraded its stock to "buy" from "neutral".

Among other movers, Macy's soared 16.6% after an investor group consisting of Arkhouse Management and Brigade Capital made a $5.8 billion offer to take the department store chain private, according to a source.

Cigna jumped 15.6% - after the health insurer ended its attempt to negotiate the acquisition of rival Humana, according to sources - and announced a $10 billion share buyback plan.

Crypto stocks like Riot Platforms, Coinbase and Marathon Digital slid between 4.4% and 10.5% as bitcoin fell to a week's low.

Declining issues outnumbered advancers for a 1.04-to-1 ratio on the NYSE and for a 1.35-to-1 ratio on the Nasdaq.

The S&P index recorded 46 new 52-week highs and no new lows, while the Nasdaq recorded 72 new highs and 75 new lows.

(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)

Popular

AP Decision Note: What to expect in Hawaii's Democratic presidential caucuses

Hawaii Democrats will hold a presidential preference vote on Wednesday as President Joe Biden moves closer to securing the delegates needed to clinch nomination for a second term in the White House

Nippon Steel exec to meet USW head to seek support for U.S. Steel deal

By Yuka Obayashi and Ritsuko Shimizu TOKYO (Reuters) - A senior Nippon Steel executive told Reuters he is set to meet the United Steelworkers (USW) union chief this month to seek support for acquiring

US issues fresh curbs on Zimbabwe president, others; terminates sanctions program

WASHINGTON (Reuters) - The United States on Monday terminated a Zimbabwe sanctions program and reimposed curbs on nine people and three entities, including the country's president, over their alleged

Suriname's Staatsolie signs gas exploration deal with Petronas, Exxon

PARAMARIBO (Reuters) - Suriname's Staatsolie said on Monday that Malaysia's Petronas and U.S. oil giant Exxon Mobil have agreed to extend exploration of a gas discovery off its coast, and are

First over-the-counter birth control pill in US begins shipping to stores

The first over-the-counter birth control pill will be available in U.S. stores later this month

Settlement in Wisconsin fake elector case offers new details on the strategy by Trump lawyers

Two attorneys for then-President Donald Trump orchestrated a plan for fake electors to file paperwork falsely saying he won Wisconsin in a strategy to overturn Joe Biden’s 2020 victory there

Related

Central banks on brink of victory in inflation fight - BIS

By Marc Jones LONDON (Reuters) - Central banks are on the brink of victory in the fight to bring the global surge in inflation back under control, the Bank for International Settlements said on Monday

Managers explore dollar shift to handle faster US stock settlement

By Laura Matthews NEW YORK (Reuters) - Some investment managers are looking to change the currency their funds do business in to the dollar to prevent their foreign exchange transactions from failing

Stock market today: Japan's Nikkei tops 40,000, as investors await China political meeting

Asian stocks are mostly higher ahead of China’s top annual political gathering, while Japan’s benchmark closed above 40,000 for the first time

China seeks ways to revive slowing economy and salvage property market as annual congress convenes

China's efforts to restore confidence and rev up the economy will top the agenda during this month’s meeting of the ceremonial national legislature

- Advertisement -
Advertisement: Limited Time Offer