NEW YORK, Jan 9 (Reuters) – The S&P 500 index (.SPX) closed barely modified on Monday as expectations that the Federal Reserve will grow to be much less aggressive with its rate of interest hikes have been offset by lingering worries about inflation.
The Dow edged decrease, and the Nasdaq Composite (.IXIC) ended off the day’s highs.
Traders are awaiting feedback Tuesday from Fed Chair Jerome Powell, who some strategists count on may say that extra time is required to point out inflation is below management.
Cash market bets have been exhibiting 77% odds of a 25-basis level hike within the Fed’s February coverage assembly.
A shopper costs report due Thursday may very well be key for fee expectations, mentioned Quincy Krosby, chief international strategist, LPL Monetary in Charlotte, North Carolina. “The CPI report this week goes to be important for fine-tuning the Fed funds futures market.”
After latest robust market positive aspects, “you are seeing a bit little bit of profit-taking forward of the CPI quantity due out this week,” mentioned Paul Nolte, portfolio supervisor at Kingsview Funding Administration in Chicago.
The know-how sector (.SPLRCT) gained as Treasury yields fell. Shopper discretionary shares (.SPLRCD) additionally rose, with Amazon.com Inc (AMZN.O) up after Jefferies mentioned it noticed value pressures easing for the e-commerce big within the second half of the yr.
Additionally, S&P 500 corporations are about to kick off the fourth-quarter earnings interval, with outcomes from high U.S. banks anticipated later this week.
Based on preliminary information, the S&P 500 (.SPX) misplaced 2.74 factors, or 0.07%, to finish at 3,892.34 factors, whereas the Nasdaq Composite (.IXIC) gained 66.13 factors, or 0.63%, to 10,635.96. The Dow Jones Industrial Common (.DJI) fell 111.48 factors, or 0.33%, to 33,519.13.
Friday’s jobs report, which confirmed a moderation in wage will increase, additionally lifted hopes that the Fed would possibly grow to be much less aggressive in its rate-hike push to scale back inflation.
Tesla Inc (TSLA.O) rose after the electric-vehicle maker indicated longer ready instances for some variations of the Mannequin Y in China, signaling the latest value cuts may very well be stoking demand.
Macy’s Inc (M.N) and Lululemon Athletica Inc (LULU.O) fell after each retailers issued disappointing holiday-quarter forecasts.
Extra reporting by Shubham Batra, Amruta Khandekar and Ankika Biswas in Bengaluru; Enhancing by Shounak Dasgupta and Richard Chang
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