U.S. stocks traded marginally higher Monday, consolidating after a record-high run, ahead of the release of key inflation data later this week.
By 09:55 ET (14:55 GMT), the Dow Jones Industrial Average was up 90 points, or 0.2%, the S&P 500 traded 3 points, or 0.1%, higher and NASDAQ Composite traded largely unchanged.
Hype over artificial intelligence, especially after consensus-beating results from market darling Nvidia (NASDAQ:NVDA), helped both the S&P 500 and the Dow Jones Industrial Average climb to record levels last week.
Inflation, GDP data awaited
However, a string of signals from the Federal Reserve last week showing that the central bank was in no hurry to begin trimming interest rates in the near-term limited the gains.
Anticipation of more key inflation readings this week, specifically the PCE price index, which is the Fed’s preferred inflation gauge, is keeping traders on edge at the start of the new week.
Investors were seen largely pricing out the prospect of May and June rate cuts by the Fed, amid increasing signs that inflation remained sticky.
Beyond the PCE data, focus is also on a second reading of fourth-quarter gross domestic product data, which is due on Wednesday. The while U.S. economic growth has remained resilient in comparison to other developed countries, it has also cooled in recent quarters.
Retail earnings on tap for more spending cues
With the fourth quarter earnings season now coming to a close, earnings reports from a string of major retailers are on tap this week.
Lowe’s Companies (NYSE:LOW), Macy’s (NYSE:M), TJX Companies (NYSE:TJX) and Best Buy (NYSE:BBY) will release their quarterly readouts through the week, with any signs of a spending slowdown squarely in focus.
Elsewhere, Alcoa (NYSE:AA) stock fell over 5% after the alumina producer made a $2.2 billion offer for Australian peer and joint venture partner Alumina (ASX:AWC).
ord (NYSE:F) rose 0.4% despite the auto giant confirming it had halted shipments of all of its 2024 model year F-150 Lightning trucks, citing quality checks for an unspecified issue.
Berkshire Hathaway (NYSE:BRKa) stock climbed 1.4% after Warren Buffett’s conglomerate posted its second straight record annual profit, bringing it closer to a $1 trillion market value.
Domino’s Pizza (NYSE:DPZ) stock soared over 8% after the restaurant chain hiked its dividend and gave the green light to further share repurchases.
Crude rebounds despite demand concerns
Oil prices edged higher Monday, rebounding after last week’s losses as markets remained uncertain over demand, especially in the face of higher-for-longer U.S. interest rates.
By 09:55 ET, the U.S. crude futures traded 0.4% higher at $76.78 a barrel, while the Brent contract climbed 0.3% to $81.05 a barrel.
Both contracts ended last week between 2% and 3% lower on indications that U.S. interest rate cuts could be delayed by two months due to an uptick in inflation.
Demand concerns largely outweighed signs of continued geopolitical instability in the Middle East, which had offered oil some support earlier in 2024 as markets feared potential supply disruptions.
Additionally, gold futures fell 0.6% to $2,037.15/oz, while EUR/USD traded 0.3% higher at 1.0846.
(Ambar Warrick contributed to this article.)
https://www.investing.com/news/stock-market-news/us-stock-futures-muted-as-tech-rally-slows-rate-fears-persist-3314482
