Wall Street in Anticipation of Key Inflation Report
In light of a crucial inflation report scheduled for release this week, US stocks are showing mixed patterns, which could significantly influence the Federal Reserve's policy meeting next month. As of 13:21 ET, the Dow Jones Industrial Average has risen by 43 points or 0.1%, while the S&P 500 and NASDAQ Composite have dropped by 0.2% and 0.8% respectively. The Fed's aggressive interest rate stance has instilled fears of a potential recession in investors, leading to lower stocks in recent trading sessions.
Tech Stocks' Downturn Amid Russian Uncertainty
The technology sector took a hit on Friday, disrupting NASDAQ's consecutive eight-week rise, with S&P also breaking its five-week winning streak. Investors are now examining the potential impact of the Russian turmoil on the markets. The failed revolt by Russian paramilitary forces over the weekend has caused uncertainty regarding President Vladimir Putin's hold on power.
Oil Stabilization and Watchful Eye on Europe
On the brighter side, oil prices found stability on Monday. Traders are closely observing Europe for any signs that could disrupt oil supplies.
Federal Reserve Meeting in Focus Amid Economic Indicators
The forthcoming movement in interest rates is another area of concern for investors. Despite the Fed's recent pause on rate hikes, Chair Jerome Powell indicated that further tightening may be in the offing, with possibly two more rate increases this year. Futures traders predict a 74% chance of the Fed raising rates by a quarter of a percentage point in the upcoming meeting. Other economic indicators on the watchlist this week include consumer confidence, new home sales, durable orders, and weekly jobless claims. The next GDP reading is expected to be released on Thursday.
Biden's Push for High-Speed Internet
In another development, the White House announced a $42 billion plan to provide high-speed internet access to American households by 2030. The initiative, funded by the infrastructure bill passed by Congress, will distribute the amount among states over the coming years.
Market Highlights: Pfizer Stumbles, Lucid Surges, Carnival Sinks
In the stock market, Pfizer Inc. shares fell by 3.9% following the company's decision to halt the development of an experimental obesity and diabetes drug due to high liver enzyme levels in some study participants. Conversely, Lucid Group, Inc. saw a 4.8% rise in shares after inking a deal with UK automaker Aston Martin. Carnival Corporation shares plummeted by 11% as the cruise operator lowered its annual loss forecast, despite higher ticket prices and steady demand.
