- You earn technology stocks
- Macy’s and Lululemon fall in quarterly warnings
- Indices: The Dow Jones fell 0.3%, the Standard & Poor’s 500 fell 0.1%, and the Nasdaq fell 0.6%.
NEW YORK, Jan. 9 (Reuters) – S&P 500 Index (.SPX) Early gains faded to close almost flat on Monday as expectations that the Federal Reserve would become less aggressive with rate hikes were offset by persistent concerns about inflation.
The Dow finished lower, and the Nasdaq Composite (nineteenth) Finished well off today’s highs.
Investors await comments on Tuesday from Federal Reserve Chairman Jerome Powell, who some strategists speculate may say more time is needed to show inflation is under control.
Money market bets were showing odds of 77% for an increase of 25 basis points at the Fed’s monetary policy meeting in February.
Quincy Crosby, chief global strategist, LBL Financial in Charlotte, North Carolina, said the consumer price report due Thursday could be a key to the price outlook. “This week’s CPI report will be essential to grounding the Fed Funds futures market.”
Investors may also have sold some stocks after the market’s recent strong gains, said Paul Nolte, a portfolio manager at Kingsview Investment Management in Chicago. “You are seeing a little bit of profit-taking ahead of the CPI number due out this week.”
technology sector (.SPLRCT) Gains with lower Treasury yields. Estimated consumer inventory (.SPLRCD) It also rose, with Amazon.com Inc (AMZN.O) up 1.5% after Jefferies said it saw cost pressures ease on the e-commerce giant in the second half of the year.
Also, S&P 500 companies are about to start their fourth-quarter earnings period, with results from major US banks expected later this week.
Dow Jones Industrial Average (.DJI) It fell 112.96 points, or 0.34%, to 33,517.65, the Standard & Poor’s 500. (.SPX) It lost 2.99 points, or 0.08%, to 3,892.09 points, and the Nasdaq Composite. (nineteenth) It added 66.36 points, or 0.63%, to 10,635.65 points.
Shares of Broadcom Inc (AVGO.O) It fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, reported that Apple Inc. (AAPL.O) It plans to drop the Broadcom chip in 2025 and use an in-house design instead.
Friday’s jobs report, which showed moderating wage increases, raised hopes that the Fed may become less aggressive in its push to raise interest rates to bring down inflation.
Tesla Inc (TSLA.O) Shares rose 5.9% after the electric car maker cited longer waiting times for some Model Y versions in China, suggesting recent price cuts could fuel demand.
Trading volume on US exchanges reached 11.35 billion shares, compared to an average of 10.90 billion for the full session over the last 20 trading days.
Advances outnumbered losers on the New York Stock Exchange by a ratio of 1.85 to 1; On the Nasdaq, a ratio of 1.48 to 1 favored the bulls.
S&P 500 records 13 new 52-week highs and 2 new lows; The Nasdaq index posted 129 new highs and 32 new lows.
Additional reporting by Shubham Batra, Amruta Khandekar and Anika Biswas in Bengaluru. Edited by Chunak Dasgupta and Richard Chang
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