U.S. stocks edged lower on Monday as investors braced for the Federal Reserve’s policy decision and key inflation data next week, with events at Nvidia (NVDA) and Apple (AAPL) in immediate focus.
The Dow Jones Industrial Average (^DJI) was just below flat, ending a week of gains for the three major indexes on a subdued note. The S&P 500 Average (^GSPC) and the tech-heavy Nasdaq Composite Index (^IXIC) were down about 0.2% and 0.3%, respectively.
Stocks have been stymied by mixed results from May’s nonfarm payrolls report, which has strengthened expectations that the Fed will keep interest rates at their highest in 20 years for an extended period of time. Traders have lowered their expectations for a September rate cut and increased their expectations for a November cut, according to CME FedWatch.
read more: How does the labor market affect inflation?
Investors are now focusing on the Fed’s next interest rate decision on Wednesday and May’s Consumer Price Index inflation figure, which will be the next big test for stocks.
Meanwhile, Nvidia’s (NVDA) stock split and a major Apple (AAPL) event are in focus as catalysts for stocks moving higher on Monday.
Wall Street is expecting volatile trading for Nvidia as small investors rush to buy the company following its 10-for-1 stock split, a move some strategists are calling “the opportunity of a generation.”
Monday also marks the first day of Apple’s most anticipated developers conference in years, where CEO Tim Cook is expected to announce a big push into AI to catch up with rivals.
Meanwhile, investors are keeping a close eye on the fallout from political upheaval in Europe, where French President Emmanuel Macron called early elections after a crushing defeat for his far-right party in Sunday’s EU-wide vote, which also saw Germany’s leader suffer a crushing defeat. The euro (EUR-USD=X) fell to its lowest in a month and the Paris stock index (^FCHI) fell about 2%.
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