US stocks concluded Monday’s trading session largely unchanged as investors began a pivotal week that will witness the commencement of the first quarter earnings season and a new inflation data test for rate-cut views.Â
Inflation Pressure
The tech-heavy Nasdaq Composite (^IXIC), the S&P 500 (^GSPC), and the Dow Jones Industrial Average (^DJI) all closed close to the flatline.
Even if Friday’s jobs data was solid, investors’ misgivings about the Federal Reserve’s commitment to cutting interest rates prevented stocks from recovering from their weekly losses.
The 10-year Treasury yield (^TNX) was at 4.42% after last week’s bond sell-off. Even while the benchmark has trimmed gains, it is still close to the crucial 4.5% level, which some believe could serve as a turning point for a rally toward the highs of the previous year.
Hike In Oil Price
A rise in oil prices due to intensifying Middle East tensions that could exacerbate inflation pressures, differing opinions on policy expressed by Fed speakers, and increased buzz surrounding the upcoming US presidential election all contributed to the uneasy atmosphere.
All of this is making people more focused on Wednesday’s release of the Consumer Price Index, which is a crucial factor in the Fed’s decision-making process and a sign of the US economy’s ongoing resiliency.
While this is going on, the market is getting ready for the start of the new earnings season. On Wednesday, Delta Air Lines (DAL) will set the stage for the big banks’ results on Friday.
Wall Street, encouraged by the shocking March labor statistics, anticipates that the first quarter will, in general, set the tone for a strong year of earnings growth among S&P 500 businesses.
In light of this, the price of gold increased past $2,350 an ounce to reach a new high. As the market evaluated the easing of tensions in the Middle East, oil prices rose to levels not seen in several months.
West Texas Intermediate futures (CL=F) ended the day at $86.43, while Brent crude futures (BZ=F) settled at $90.48 a barrel.
