On Monday, the S&P 500 index closed nearly flat as investors weighed the possibility of the Federal Reserve becoming less aggressive with interest rate hikes against ongoing worries about inflation. The Dow ended lower, while the Nasdaq Composite ended off its highs for the day. Investors are awaiting comments from Fed Chair Jerome Powell on Tuesday, with some money market bets showing a 77% probability of a 25-basis point hike at the Fed’s February policy meeting. A consumer price report due on Thursday may also impact rate expectations. In addition, some profit-taking may have occurred following recent strong market gains, according to Paul Nolte, portfolio manager at Kingsview Investment Management. The technology sector saw gains as Treasury yields fell, and consumer discretionary stocks, including Amazon, also rose. Fourth-quarter earnings from top US banks are also expected this week.
The US stock market ended with mixed results on Monday as investors weighed the possibility of the Federal Reserve becoming less aggressive with interest rate hikes against ongoing concerns about inflation. While the technology sector and consumer discretionary stocks saw gains, the Dow and S&P 500 had more mixed results. Investors are also awaiting earnings reports and a consumer price report in the coming days, which could impact market expectations and performance.