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Wall Street ended mixed on Monday as market participants sought insights into the Federal Reserve's rate cut plans. The Nasdaq Composite ended in positive territory, while the Dow and the S&P 500 finished in the red zone.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2% or 81.33 points to close at 39,431.51. Notably, 13 components of the 30-stock index ended in negative territory, while 17 finished in green.
The S&P 500 declined 0.02% or 1.26 points to end at 5,221.42. Of the 11 broad sectors of the benchmark, nine ended in negative territory, while two ended in the green zone. The Industrials Select Sector SPDR (XLI), the Financials Select Sector SPDR (XLU), the Energy Select Sector SPDR (XLE) and the Consumer Staples Select Sector SPDR (XLP) fell 0.4%, 0.4%, 0.3% and 0.3%, respectively, while the Technology Select Sector SPDR (XLY) advanced 0.5%.
The fear-gauge CBOE Volatility Index (VIX) crept up 1.6% to 13.82. A total of 10.09 billion shares were traded on Monday, lower than the last 20-session average of 10.79 billion. The S&P 500 posted 34 new 52-week highs and no new 52-week low. The Nasdaq Composite registered 145 new 52-week highs and 91 new 52-week lows.
Investors Try to Gauge Fed’s Move With Rate Cuts
Investors are awaiting U.S. inflation figures this week as they play a vital role in shaping expectations regarding U.S. interest rates. The producer price index (PPI) is scheduled for release on Tuesday, followed by the consumer price index (CPI) on Wednesday. Analysts on Wall Street are expecting an increase of 0.2% in Core PPI for April compared to the 0.2% uptick in March. Similarly, projections suggest a 0.3% rise in Core CPI for April than the 0.4% gain seen in March.
Moreover, market participants will closely examine statements from Fed Chair Jerome Powell on Tuesday and Minneapolis Fed President Neel Kashkari on Wednesday for insights into policies. According to the CME FedWatch tool, there is a 60% likelihood of a rate cut by September and an anticipation of around 44 basis points in cuts by 2024.
In addition to inflation data, various economic indicators are on the horizon, such as retail sales data, the home builder confidence index, housing starts and building permits, and the Philadelphia Fed manufacturing survey which will provide further insights into the state of the economy and potentially influence market sentiments.
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Stock Market News for May 14, 2024
Market News
Wall Street ended mixed on Monday as market participants sought insights into the Federal Reserve's rate cut plans. The Nasdaq Composite ended in positive territory, while the Dow and the S&P 500 finished in the red zone.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2% or 81.33 points to close at 39,431.51. Notably, 13 components of the 30-stock index ended in negative territory, while 17 finished in green.
The tech-heavy Nasdaq gained 47.37 points or 0.3% to close at 16,388.24. The major gainer of the Nasdaq Composite was Moderna, Inc. (MRNA - Free Report) , after jumping 7.1%. Moderna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 declined 0.02% or 1.26 points to end at 5,221.42. Of the 11 broad sectors of the benchmark, nine ended in negative territory, while two ended in the green zone. The Industrials Select Sector SPDR (XLI), the Financials Select Sector SPDR (XLU), the Energy Select Sector SPDR (XLE) and the Consumer Staples Select Sector SPDR (XLP) fell 0.4%, 0.4%, 0.3% and 0.3%, respectively, while the Technology Select Sector SPDR (XLY) advanced 0.5%.
The fear-gauge CBOE Volatility Index (VIX) crept up 1.6% to 13.82. A total of 10.09 billion shares were traded on Monday, lower than the last 20-session average of 10.79 billion. The S&P 500 posted 34 new 52-week highs and no new 52-week low. The Nasdaq Composite registered 145 new 52-week highs and 91 new 52-week lows.
Investors Try to Gauge Fed’s Move With Rate Cuts
Investors are awaiting U.S. inflation figures this week as they play a vital role in shaping expectations regarding U.S. interest rates. The producer price index (PPI) is scheduled for release on Tuesday, followed by the consumer price index (CPI) on Wednesday. Analysts on Wall Street are expecting an increase of 0.2% in Core PPI for April compared to the 0.2% uptick in March. Similarly, projections suggest a 0.3% rise in Core CPI for April than the 0.4% gain seen in March.
Moreover, market participants will closely examine statements from Fed Chair Jerome Powell on Tuesday and Minneapolis Fed President Neel Kashkari on Wednesday for insights into policies. According to the CME FedWatch tool, there is a 60% likelihood of a rate cut by September and an anticipation of around 44 basis points in cuts by 2024.
In addition to inflation data, various economic indicators are on the horizon, such as retail sales data, the home builder confidence index, housing starts and building permits, and the Philadelphia Fed manufacturing survey which will provide further insights into the state of the economy and potentially influence market sentiments.