Stock markets in the United States closed on Monday with the S&P 500 dipping slightly as investors waited for an important inflation reading. This could give analysts a better idea of how long the U.S. Federal Reserve will keep interest rates high. The Consumer Price Index (CPI) for October is expected to be released early Tuesday with economists predicting a headline increase of 3.3% following September’s 3.7%. Investors are holding off on making big decisions because of this data, as well as Moody’s recent downgrade on the U.S. credit rating.
They are also trying to anticipate the potential government shutdown, caused by disagreements over the spending bill. House Speaker Mike Johnson’s short-term funding measure intended to avoid a shutdown has been met with opposition from both Republican and Democratic members of Congress. The Dow Jones rose slightly on Monday with Boeing climbing 4% while technology and consumer discretionary stocks weighed down on the S&P 500. The Nasdaq took a 0.22% dip due to declining shares of heavyweight stocks such as Apple and Microsoft.
With October’s CPI reading due to be released early on Tuesday, this affected how stock markets in the U.S. performed on Monday. The data should give analysts a good indication of how long interest rates will stay elevated by the U.S. Federal Reserve. Despite the rise in the Dow Jones, caused by Boeing, the S&P 500 and the Nasdaq saw minimal changes on Monday. Investors are also trying to anticipate a potential government shutdown caused by disagreements over the spending bill, as anxiety surrounding this also adds to market uncertainty. However, medtech companies rallied on Monday after sharing clinical data on weight loss drug and the 737 Max aircraft had sparked some interest from China.
The S&P 500 closed slightly lower on Monday as market players eagerly anticipated the Consumer Price Index data due to be revealed on Tuesday. Investors were also holding back on making big decisions amid Moody’s downgrade on the U.S. credit rating and the looming threat of a possible government shutdown. Despite the Dow Jones ticking up slightly, the S&P 500 and Nasdaq ended the day with minimal change, as different industry sectors took turns either to gain or lose.