The S&P 500 closed just below the flat line after a record-setting week that saw the benchmark close above 5,000 for the first time, the Dow Jones Industrial Average added nearly 0.3% to reach a new record, while the tech-heavy Nasdaq dropped 0.3%
US stocks closed mixed on Monday after the S&P 500 index notched a historic close in the prior session, as investors prepared for the first key inflation update of the year and the next string of earnings reports.
The S&P 500 closed just below the flat line after a record-setting week that saw the benchmark close above 5,000 for the first time. The Dow Jones Industrial Average added nearly 0.3% to reach a new record, while the tech-heavy Nasdaq dropped 0.3%.
Shares of chipmaker Nvidia gained 2% to reach another record on Monday before paring gains. British semiconductor designer Arm (ARM) also soared to a new record, extending its rally from last week.
Stocks have gained as the market digests a series of better-than-expected corporate results, with big tech names driving the lion’s share. Eyes are on the next batch of quarterly reports, with John Deere (DE), Coca-Cola (KO), Airbnb (ABNB), and Kraft Heinz (KHC) serving as highlights on the docket in the coming days.
But the week will bring a new challenge to the rally, with the January reading of the Consumer Price Index (CPI) due Tuesday. The CPI report will give investors their first insight into how cool inflation is running this year and, alongside an update on consumer spending, will set expectations for the timing and pace of Fed interest rate cuts this year.
Traders have scaled back bets on a March rate cut amid a series of warnings from cautious Federal Reserve officials. Monday brings more Fedspeak, with regional presidents Michelle Bowman, Tom Barkin, and Neel Kashkari scheduled to appear.