As investors wait for important inflation statistics to offer further information about whether this year’s market run is sustainable, the S&P 500 and Nasdaq ended at new highs on Monday. Earnings from a number of significant consumer and financial businesses are also scheduled.
The Nasdaq Composite gained 0.28% to 18,403.74, while the broad market index finished the day up 0.1% at 5,572.85. At 39,344.79., the Dow Jones Industrial Average closed 31 points, or 0.08%, down.
Amidst persistent optimism that reducing inflation and any areas of weakness in the economy might result in a Federal Reserve interest rate decrease,
The S&P 500 is coming off its fourth positive week in the past five.
If the headline data indicates a little improvement, such optimism may be reinforced by the June consumer price index, which is scheduled for publication on Thursday. This Friday, producer price index data will be made available.
The labor market seemed to be cooling last week, which raised hopes for a rate decrease. Despite the fact that the U.S. economy created more jobs in June than was predicted, the unemployment rate unexpectedly increased to 4.1% from 4%. According to the CME FedWatch Tool, traders are now projecting two interest rate reductions in 2024, the first of which is scheduled for September.
READ MORE: The Paramount merger: Movie theater owners are concerned.
In a report published on Monday, UBS analyst Vincent Heaney said, “We believe the fundamental backdrop remains supportive for equities, driven by solid economic and earnings growth, interest rate cuts, and rising investment in AI.”
On Thursday, PepsiCo and Delta Air Lines will release their financial reports. Then, on Friday, a number of significant banks, including Citigroup and JPMorgan Chase, will begin reporting their second quarter results.
