Wall Street experienced a subdued trading session on Monday. U.S. Treasury yields dipped as investors prepared for a week filled with high-profile quarterly earnings reports and crucial economic data. The three major U.S. stock indexes struggled to find direction, with the S&P 500 and the Dow barely changing, while the Nasdaq moved into negative territory after losing an early lead.
Market Uncertainty Keeps Traders on the Sidelines
According to Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, the market is currently filled with uncertainty, which has caused many traders to remain on the sidelines. At the same time, they await this week's big earnings results. Interest rate-sensitive mega-cap stocks such as Alphabet, Microsoft, Meta Platforms, and Amazon are among the companies set to report earnings.
General Motors, Boeing, Northrop Grumman, and Caterpillar Earnings Loom
In addition to tech giants, high-profile industrial companies like General Motors, Boeing, Northrop Grumman, and Caterpillar are scheduled to release earnings reports this week.
Economic Data to Watch: Housing, Industrial Output, and GDP
On the economic front, investors will closely monitor data on housing, industrial output, and the Commerce Department's initial estimate of first-quarter GDP. The week's data releases will culminate on Friday with the Personal Consumption Expenditures (PCE) report, a key indicator of income, spending, and inflation.
European Stocks Tread Water as Earnings Season Continues
European stocks remained cautious ahead of potentially market-moving earnings reports from European banks and U.S. mega-cap companies. The pan-European STOXX 600 index rose 0.03%, while MSCI's global stocks gauge also gained 0.03%.
U.S. Treasury Yields Dip on Slower Inflation, Economic Activity
U.S. Treasury yields eased on Monday following the National Activity report from the Chicago Fed, which indicated a slowdown in inflation and economic activity in March. Benchmark 10-year notes saw their yields fall to 3.5261%, while 30-year bond yields dropped to 3.7348%.
Greenback Weakens Ahead of Bank of Japan Meeting
The U.S. dollar weakened against a basket of world currencies, with the euro gaining strength and the yen falling in anticipation of the upcoming Bank of Japan meeting. The dollar index declined 0.26%, while the euro rose 0.37% to $1.1028.
Crude Prices Seesaw Amid Rising Interest Rates, Softening Demand
Crude oil prices fluctuated as markets balanced concerns over rising interest rates and softening demand with the potential for tightening supplies. U.S. crude increased 1% to $78.65 per barrel, and Brent climbed 0.96% to $82.24.
Gold Range Bound Ahead of Major Economic Data
Gold prices remained range-bound in anticipation of significant economic data that could influence the Federal Reserve's decision-making process during next month's monetary policy meeting. Spot gold was barely changed, up 0.01% to $1,983.19 an ounce.