U.S. stocks dipped slightly on Monday as investors awaited key reports on inflation and the Federal Reserve’s upcoming meeting on interest rates. The S&P 500 and Dow Jones were both down 0.2%, while the Nasdaq composite slipped 0.2%.
Huntington Bancshares saw a 4.5% drop after cutting its profit forecast for the year, while Diamond Offshore Drilling surged 8.5% following a deal with Noble valued at $1.6 billion.
Apple was down 0.3% ahead of a conference on artificial intelligence technology, which has driven stock market records despite concerns about high interest rates and economic slowdown.
Despite mixed economic data, traders are hopeful for a controlled slowdown to ease inflation pressures. The Federal Reserve may consider cutting interest rates to stimulate the economy before a potential recession.
In the bond market, Treasury yields were mixed as reports on inflation levels were anticipated later in the week. The Federal Reserve will announce its interest rate decision on Wednesday, with projections likely to show fewer expected rate cuts for 2024 than previously forecasted.
In global markets, France’s CAC 40 index dropped 1.9% after President Macron dissolved the National Assembly following European Parliament election results favoring far-right parties. Asian markets were mixed, with Japan’s Nikkei 225 up 0.9% and South Korea’s Kospi down 0.8%.
Overall, investors are closely monitoring economic indicators and central bank actions to navigate market volatility.