The financial community saw limited moves in Wall Street's major market averages on Monday as investors remain cautious ahead of the Federal Reserve's latest policy decision and inflation data, which are scheduled to arrive later in the week.
He Frontline Dow (dji) fell 0.2%the S&P 500 benchmark index (SP500) was nearly flat, and the tech-focused Nasdaq Composite (COMP: IND) went up 0.1%.
From a sector standpoint, six of the 11 S&P segments are higher, with Energy at the top of the list. At the other extreme, the financial sector is the one that has suffered the most.
Treasury yields are mixed after Friday's rally. The shorter US 2-year Treasury yield (US2Y) fell 1 basis point to 4.88%. At the same time, the yield on the long-term 10-year US Treasury bond rose 3 basis points to 4.46%. Additionally, Société Générale highlighted some key technical levels for both the US2Y and US10Y.
See here how other yields trade along the entire yield curve.
As for stocks on the move, Southwest Airlines (LUV) Stock Is Up 6% following a report that activist investor Elliott Investment Management has built up a nearly $2 billion stake in the airline, making it one of the largest shareholders.
At the other extreme, Perion Network (PERI) collapsed 27% after the company updated financial guidance for the second quarter and fiscal 2024 significantly below estimates.
Nvidia (NVDA) officially split its shares and Barclays raised its estimates, citing a potential $25 billion opportunity for sovereign nations to develop their artificial intelligence capabilities.
Monday's economic calendar is light as investors focus their attention on two mega-events scheduled for Wednesday: the Federal Reserve's interest rate decision and consumer price index data for May.
“Powell's press conference will certainly offer nuance on any changes, and will have the ability to give them a dovish or hard spin. Optionality with little specific guidance will likely be preferred at this stage,” said Deutsche Bank's Jim Reid.
“Our forecast that the Federal Reserve will ease monetary policy by a total of 125 basis points this year, starting in September, is based on the idea that the labor market is slowing sharply,” Pantheon Macroeconomics said.
