On Monday, both the S&P 500 and Nasdaq experienced slight declines as market participants await crucial consumer and producer price indices this week. These figures are highly anticipated for hints on the Federal Reserve’s interest rate direction in the near term. Shares of Boeing dropped by 3% after U.S. Transportation Secretary Pete Buttigieg voiced expectations for the company’s cooperation with ongoing investigations into a recent incident involving an Alaska Airlines 737 MAX 9. Meanwhile, the industrial sector saw a dip, though the Dow managed to secure a modest gain. Upcoming U.S. consumer price data for February is expected to show a 0.4% monthly rise and a 3.1% year-on-year increase, with producer prices to be reported on Thursday.
Financial markets are bracing for potential volatility from these reports, with opinions divided between fears of inflation resurgence and prospects of deflation facilitating Fed rate cuts. Last month, signs of economic strength dampened hopes for an imminent Fed rate reduction, shifting expectations from March to June. In the latest market movement, the Dow Jones Industrial Average rose slightly by 46.97 points (0.12%) to 38,769.66, whereas the S&P 500 and Nasdaq Composite fell by 5.75 points (0.11%) and 65.84 points (0.41%), respectively. In the semiconductor sector, notable companies like Nvidia, AMD, and Broadcom saw declines, while Equitrans Midstream enjoyed a 1.5% uptick following EQT Corp’s announcement to reacquire the unit in a stock deal, causing EQT shares to drop by 7.8%. Amidst these shifts, the New York Stock Exchange had more decliners than advancers, a trend echoed in Nasdaq’s trading day.
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