U.S. stocks were modestly higher early Monday ahead of a key week that could provide important signals on near-term interest rate movements.
The S&P 500 (^GSPC) rose 0.2% and the tech-heavy Nasdaq Composite Index (^IXIC) added 0.1% after both indexes hit new all-time highs on Friday. The Dow Jones Industrial Average (^DJI) added about 0.5%.
The S&P and Nasdaq are on track to hit new records after Friday’s jobs report suggested the labor market continues to cool, sparking a buying spree in anticipation of a September interest rate cut from the Federal Reserve, which is expected to happen in September, according to the CME FedWatch tool.
Several events this week could spur momentum for rate cuts. Fed Chairman Jerome Powell is scheduled to give his semi-annual testimony before Congress on Tuesday and Wednesday, and the latest Consumer Price Index is due to be released on Thursday. Economists expect headline inflation to have risen 3.1% from last year, matching the lowest level of the Consumer Price Index at the beginning of the year.
In other market-moving news, France’s left-wing coalition won the most votes in the country’s general election, surprising the far-right who had hoped it would secure a parliamentary majority. The French benchmark index (^FHCI) rose slightly.
In the corporate sector, Boeing (BA) pleaded guilty to conspiracy charges in connection with the two deadly crashes of its 737 Max planes. Shares rose about 1% at the start of trading.
Meanwhile, Tesla shares (TSLA) fell more than 1% on Monday as an eight-day winning streak came to an end.
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