Stocks were little changed on Monday morning, signaling a muted start to a week packed with a crucial inflation update and the Federal Reserve’s last policy decision of the year.
The Dow Jones Industrial Average (^DJI) rose just above the flatline, while the S&P 500 (^GSPC) edged down about 0.2%. Tech stocks led the way lower, with the Nasdaq Composite () shedding almost 0.5%.
The cautious mood comes as investors brace for two events that could set the tone for stocks going into 2024: November’s reading on consumer inflation and the Fed’s interest rate decision.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Jobs data on Friday bolstered hopes the Fed could score a “soft landing” for a US economy burdened with historically high borrowing costs. That helped the gauges closed out their sixth straight week of wins, with the S&P 500 and Nasdaq ending at their highest levels since early 2022.
Now the focus is shifting to the Consumer Price Index data due Tuesday, which could put that optimism to the test. Signs of cooling in inflation have cemented expectations that the Fed will put a pause on rate hikes this week, while bets are growing for a rate cut before the summer.
In individual corporates, Macy’s (M) shares surged 16% in premarket trading after getting a $5.8 billion buyout offer. The store chain’s board is considering the bid to take it private, a source told Yahoo Finance.
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Stocks open mixed as investors brace for Fed decision
Wall Street kicked the day off with muted trading as investors waited for a key update on inflation figures and the Federal Reserve’s last policy decision of the year. on Tuesday and Wednesday, respectively.
The S&P 500 (^GSPC) edged lower by about 0.2%, while the Dow Jones Industrial Average (^DJI) rose 0.2% or about 80 points. The tech-heavy Nasdaq Composite (^IXIC) lost almost 0.5%.
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