As traders waited for the publication of important inflation data, the S&P 500 concluded Monday's session near the flat line. The S&P 500 finished the day down 0.08% at 4,411.55. The Nasdaq Composite finished 0.22% down at 13,767.74. The Dow Jones Industrial Average gained 0.16%, or 54.77 points, to close at 34,337.87.Investors were looking forward …
As traders waited for the publication of important inflation data, the S&P 500 concluded Monday’s session near the flat line. The S&P 500 finished the day down 0.08% at 4,411.55. The Nasdaq Composite finished 0.22% down at 13,767.74. The Dow Jones Industrial Average gained 0.16%, or 54.77 points, to close at 34,337.87.
Investors were looking forward to the consumer price index data for October, which was due Tuesday, as the next driver for markets. According to Dow Jones analysts surveyed, headline inflation is predicted to be 3.3% higher than a year ago. The measure is also expected to have increased 0.1% from the previous month.
Moody’s cited the United States’ “very large” fiscal deficits and party deadlock in Washington as contributing causes to the reduction on Friday. America’s credit rating was maintained at AAA, the highest level, by the ratings agency. This comes three months after Fitch downgraded the United States’ long-term foreign currency issuer default rating from AAA to AA+, citing predicted fiscal deterioration, an increased debt load, and political gridlock on fiscal matters.
Despite the dismal outlook, Treasury rates were unchanged on Monday. The 10-year Treasury note last yielded 4.638%, a 1 basis point increase.
“We’re seeing investor reaction to the Moody’s downgrade, but we’re also seeing caution ahead of some major developments this week.” “We believe that all eyes will be on this week’s inflation data and the subsequent Fed policy,” said Greg Bassuk, CEO of AXS Investments.
With this in mind, Bassuk anticipates more market volatility until the end of the year, especially given the ongoing hostilities in the Middle East. This, paired with uneven economic statistics, “has resulted in the Grinch fueling this year’s Christmas rally.”
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
