Nov 13 (Reuters) – The S&P fell short as investors held their breath over a key inflation measure that could provide clues as to how long the U.S. Federal Reserve will keep interest rates high. The 500 stocks ended slightly lower on Monday.
After a solid rise in the index on Friday, the market’s focus on Monday shifted to the Consumer Price Index (CPI) statistics to be released on Tuesday morning. Economists expect headline growth to slow to 3.3% in October from 3.7% in September. However, core prices are expected to remain unchanged from last month.
Matt Stuckey, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company, said CPI numbers, along with the labor market, “are clearly driving what matters to financial markets. “Because that’s what will determine where Fed policy goes from here.” Milwaukee, Wisconsin.
In addition to the cooling labor market, he said, “the market has expectations that the Fed will finish raising rates, but for that to be true we need continued progress on the inflation front.” Ta.
Traders are pricing in a nearly 86% chance that the Fed will keep interest rates unchanged in December, according to CME Group’s FedWatch tool.
Michael O’Rourke, chief market strategist at Jones Trading in Stamford, Conn., said the CPI value was the main issue keeping investors in a “holding pattern” on Monday, but the U.S. credit rating announced He also said that he is digesting the worsening outlook.
Moody’s late Friday downgraded the outlook on the U.S. credit rating from “stable” to “negative”, citing large budget deficits and declining debt-bearing capacity.
O’Rourke said this has made investors reluctant to make big decisions ahead of a weekend deadline that could lead to a U.S. government shutdown.
U.S. House Speaker Mike Johnson on Saturday announced a Republican stopgap spending measure aimed at averting a government shutdown, but the measure quickly ran into opposition from members of both parties in Congress.
But on Monday afternoon, Senate Democratic leader Chuck Schumer announced tentative support for Johnson’s short-term funding bill that would keep the government open beyond the weekend.
The Dow Jones Industrial Average (.DJI) rose 54.77 points (0.16%) to 34,337.87, the S&P 500 (.SPX) fell 3.69 points (0.08%) to 4,411.55, and the Nasdaq Composite Index (.IXIC) 30.37 points. It fell. It rose 0.22% to 13,767.74.
Major U.S. stock indexes have rebounded so far this month on better-than-expected earnings and expectations that U.S. interest rates will be near record highs.
Among the 11 major S&P 500 sectors, Energy (.SPNY) was the biggest gainer, falling 0.7%, while Utilities (.SPLRCU) was the biggest loser, falling 1.2%.
Boeing (BA.N) rose 4% on Monday, supporting the Dow’s gains after Bloomberg News reported that China is considering resuming purchases of 737 MAX aircraft.
And Dubai’s Emirates has ordered 90 more Boeing 777X jets in time for the opening of the Dubai Air Show on Monday.
The S&P Healthcare Index (.SPXHC) was the benchmark’s second biggest gainer, rising 0.6%. The biggest gainer was dialysis company Davita (DVA.N), which rose 6.5%.
Other medical technology companies include Insulet (PODD.O) up 5.6%, Dexcom (DXCM.O) up 4.6% and Abbott ( ABT.N) rose 1.9%. Weight loss drug Wegovy from Nordisk (NOVOb.CO).
Tesla (TSLA.O) stock closed above 4%, providing some support for the Consumer Discretionary Index (.SPLRCD), but declines in large-cap stocks such as Apple (AAPL.O) and Microsoft (MSFT.O) weighed on it. It became cold. S&P 500 Technology Index (.SPLRCT).
On the New York Stock Exchange, advancing issues outnumbered declining issues by a ratio of 1.08 to 1. On the Nasdaq, a 1.03-to-1 ratio favored declining stocks.
The S&P 500 has recorded 24 new highs and 7 new lows in 52 weeks. The Nasdaq Composite recorded 52 new highs and 227 new lows.
On U.S. exchanges, 9.34 billion shares changed hands, compared to 10.97 billion shares after trading in the previous 20 sessions.
Reported by Sinéad Carew in New York and Sruthi Shankar and Amruta Khandekar in Bangalore.Editing: Maju Samuel and Aurora Ellis
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