In the bond market, government bond yields fell. The yield on the 10-year Treasury note fell to 4.44% from Monday’s close of 4.47%.
The main focus this week will be on Wednesday, when the US releases its latest data on consumer-level inflation and the Federal Reserve releases its latest data on interest rates. The US is also due to release its latest data on wholesale prices on Thursday.
Wall Street expects the government’s consumer price index to remain unchanged at 3.4% in May. Inflation appears to be stagnating around 3%, making it harder for the Fed to achieve its goal of pushing inflation back to its 2% target.
The Fed has kept its key interest rate steady at its highest level in more than two decades, and Wall Street expects one or two rate cuts this year. Few expect the rate to move when it meets on Tuesday, when policymakers will deliver their latest forecasts for the direction of interest rates and the economy.
When Fed officials last released their forecasts in March, they suggested a typical member expected roughly three rate cuts in 2024. That forecast will almost certainly be lower this time around.
Recent economic data has been mixed, and traders are hoping for a modest slowdown without a recession, which could ease upward pressure on inflation and prompt the Federal Reserve to cut interest rates.
European stocks fell and Asian shares were mixed.
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Associated Press writers Jimo Zhong and Matt Ott contributed to this report.
