Investing.com — U.S. stocks were mixed on Monday, hovering near record highs as investors looked to key inflation data this week for further clues on interest rates.
At market close, the S&P 500 fell 15.7 points, or 0.29%, to close at 5,447.87, while the Nasdaq Composite Index fell 190.19 points, or 1.09%, to 17,499.17.
Meanwhile, the Dow Jones Industrial Average rose 0.67% to close at 39,408.32.
Major stock indexes are hovering near all-time highs, fueled by enthusiasm for artificial intelligence. The broader index is up nearly 15% this year, while a tech-heavy index is up nearly 18%. By contrast, blue-chip stocks have lagged, rising less than 4% in the first half of the year.
Such a healthy rally is creating the potential for profit-taking, with 52% of respondents in a Bloomberg survey saying they believe the S&P 500 is overvalued.
Additionally, 49% of respondents said they see the next 10% correction in the S&P 500 beginning around 2024. Similarly, 55% said they expect to keep their exposure to the S&P 500 the same over the next month.
PCE Inflation Expected This Week
Market attention this week will mainly be on Friday’s scheduled .
This figure is the Fed’s preferred inflation gauge and is likely to lead to the central bank’s interest rate cuts.
The PCE index is expected to show inflation slowing slightly in May, but remaining well above the Fed’s 2% target for the year.
The Fed had suggested such a scenario was unlikely due to high inflation and a strong economy, but expectations that interest rates would eventually be cut sent Wall Street stock indexes hitting record highs through June.
FedEx, Micron earnings expected
Several important quarterly earnings announcements were also scheduled for this week.
Delivery and logistics company FedEx (NYSE:), whose performance is also seen as a gauge of global economic activity, is due to report results for the quarter that ended in May on Tuesday.
Memory chip maker Micron Technology (NASDAQ:) is set to report quarterly earnings on Wednesday as it expects a big boost in demand from the fast-growing artificial intelligence industry.
Sports apparel manufacturer Nike (NYSE:) and drug retailer Walgreens Boots Alliance (NASDAQ:) are scheduled to report earnings on Thursday.
Crude oil rises slightly on demand expectations
Crude oil prices steadied on Monday after a strong performance last week on signs of strengthening demand for petroleum products in the United States, the world’s biggest consumer.
By 9:35 a.m. ET, futures (WTI) were trading at $80.66 per barrel, down 0.1%, while contracts had risen to $84.35 per barrel.
Both measures rose about 3% last week after data showed a big draw in U.S. crude inventories and solid demand as the summer driving season gets underway.
The market was also supported by a worsening geopolitical situation, with the risk of an all-out war between Israel and Hezbollah increasing as an extension of the conflict with Hamas and the prospect of supply disruptions in the Middle East growing.
Ongoing clashes between Russia and Ukraine, with Kiev targeting a major Russian refinery, have also heightened fears of supply disruptions.
(Amber Warlick and Peter Nurse contributed to this article.)
