The S&P 500 ticked slightly higher Monday as investors looked ahead to key inflation data this week.
The broader index rose 0.1% to 4,109.11. The Dow Jones Industrial Average added 101.23 points, or 0.3%, to 33,586.52. Meanwhile, the Nasdaq Composite inched lower by 0.03% to close at 12,084.36.
Tech stocks struggled, with shares of Apple falling 1.6% and Google-parent Alphabet sliding 1.8%. Tesla shares fell 0.3% after the company said it will cut prices again on some electric vehicles. Meanwhile, shares of chipmakers rose after Samsung said it would cut production to support prices; Micron Technology shares gained 8%.
Investors are in for a busy week of economic data, including the latest consumer price and producer price index data for March – due out Wednesday and Thursday, respectively – which help determine if or when the Fed will pause or end its rate-hiking campaign.
“We’re seeing what we believe is the same investor narrative, which is uncertainty around the mixed economic data, which is driving uncertainty around Fed policy and a greater concern — particularly with Friday’s strong employment data — that the Fed may again move forward with another rate hike,” AXS Investments’ Greg Bassuk said.
“Investors have greater concerns about a potential U.S. recession, and the markets seem to be under greater pressure as the Fed decision looms,” he added. The next Federal Reserve meeting is set for May 2 and 3.
Investors are coming off a long holiday weekend and responding to the March jobs report that came out on Good Friday when the New York Stock Exchange was closed. The report showed a resilient economy and moderate inflation, following some signs of weakening in the labor market earlier in the week.
Nonfarm payrolls grew by 236,000 for the month, about in line with the Dow Jones estimate of 238,000, the Labor Department reported. The unemployment rate fell to 3.5%, against expectations that it would hold from the previous month at 3.6%.
Investors are also awaiting the first batch of companies reporting first-quarter financial results. Three of the largest banks JPMorgan Chase, Wells Fargo and Citigroup, and the largest health-care company, UnitedHealth Group, are scheduled to report Friday.
