US stocks found stability following a modest rise on Monday, as investors gear up for a flurry of inflation data and the commencement of the first-quarter earnings season.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) made marginal gains, while contracts on the Nasdaq Composite (^IXIC) surged by 0.3%, suggesting a cautious yet optimistic sentiment in the market.
The previous week saw mixed signals, with a strong jobs report boosting stocks on Friday but failing to prevent overall weekly losses. Lingering uncertainties regarding the Federal Reserve’s stance on interest-rate cuts continued to loom large, driving a sell-off in US bonds, which persisted into Monday, pushing the 10-year Treasury yield (^TNX) slightly above 4.45%.
Amidst these concerns, investors remain vigilant about the forthcoming Consumer Price Index (CPI) release scheduled for Wednesday. The CPI figures are closely monitored by market participants as they provide crucial insights into inflation trends, influencing the Fed’s monetary policy decisions. A retreat in inflation would affirm the resilience of the US economy, potentially alleviating fears of aggressive rate hikes.
Additionally, anticipation builds for the kickoff of the first-quarter earnings season, with Delta Air Lines (DAL) poised to unveil its performance on Wednesday, followed by major banks later in the week. Market expectations are optimistic, buoyed by robust March labor figures, suggesting a promising outlook for corporate earnings and overall economic growth.
Meanwhile, geopolitical tensions in the Middle East, which had previously propelled oil prices to multimonth highs, showed signs of easing as Israel withdrew troops from southern Gaza, leading to a slight retreat in oil prices. Brent crude futures (BZ=F) slipped to $90.40 a barrel, while West Texas Intermediate futures (CL=F) hovered around $86.20.
In contrast, gold continued its ascent, breaching the $2,350 mark per ounce to reach a new record before experiencing a mild pullback. The precious metal remains a haven for investors seeking refuge amidst market uncertainties and inflationary pressures.
As investors closely monitor inflation data and gear up for the commencement of earnings season, the market maintains a poised stance, navigating through a landscape fraught with economic indicators and corporate performance metrics.
