Stock Market Today: Dow ekes out gain ahead of key inflation report
Investing.com — The Dow eked out a gain Monday, as investors looked ahead to upcoming inflation data that will likely shape the Federal Reserve's interest rate outlook.
By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 46 points, or 0.1%, S&P 500 fell 0.1%, and NASDAQ Composite slipped 0.4%.
The consumer price index data, due on Tuesday, will be studied carefully for more cues on the path of U.S. interest rates and the economy.
The reading is expected to show some easing in inflation after outsized CPI readings for the past two months, although the annual core figure is still expected to remain well above the Fed’s annual 2% target.
The data is set to arrive in the wake of a strong employment that forced some market participants to ditch their call for a May rate hike, with June now more likely.
«We now expect the first rate cut to come at the June FOMC meeting. Chair Powell's testimony this week was fairly balanced, however, and seemed consistent with a Chair retaining that option,» UBS said in a recent note.
Fed Chair Jerome Powell, as well as several other central bank officials, had signaled last week that they were still seeking more signs that inflation was weakening, before the bank would consider cutting interest rates.
Market watchers will also be looking to Thursday’s retail sales data for February, which is expected to rebound 0.8% after falling the same amount a month earlier.
The economic calendar also features updates on industrial production, consumer sentiment and weekly data on initial jobless claims.
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