The S&P 500 and Nasdaq eked out record closing highs on Monday, although investors were cautious ahead of this week’s consumer prices report, a Federal Reserve policy announcement and Apple’s developer conference.
Providing some support to the Nasdaq and S&P 500, Nvidia shares ended up 0.7%, the session after a 10-for-one stock split. Some investors now believe the chip maker might be included in the blue-chip Dow.
The Consumer Price Index report for May is due Wednesday along with the conclusion of the Fed’s two-day policy meeting.
The central bank, which will release updated economic and policy projections, is expected to hold interest rates steady. Investors will look for clues on when the U.S. central bank may begin to cut interest rates.
“This is an important week for the market in terms of comments and messaging from the Federal Reserve,” said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina.
“In addition to that, you’re going see Wednesday morning the CPI report. Anything related to the economy and anything related to inflation is viewed by the market through the lens of the Federal Reserve.”
The Dow Jones Industrial Average rose 69.05 points, or 0.18%, to 38,868.04, the S&P 500 gained 13.8 points, or 0.26%, to 5,360.79 and the Nasdaq Composite added 59.40 points, or 0.35%, to 17,192.53.
Traders dialed back expectations for rate cuts in September after Friday’s stronger-than-expected jobs data for May, with the odds of a reduction at 50%.
“I feel like it’s going to be pretty muted as people try to hedge themselves for what they might see on Wednesday,” said Alex McGrath, private wealth advisor at NorthEnd Private Wealth.
Apple shares dipped 1.9% ahead of the iPhone maker’s annual developer conference. Investors are eager for updates on how it is integrating artificial intelligence into its offerings.
Among the day’s gainers, Southwest Airlines jumped 7% after activist investor Elliott Investment Management disclosed it has built up a $1.9 billion position in the company.
Diamond Offshore Drilling shares climbed 10.9% after oilfield services company Noble said it would buy the smaller rival in a $1.59 billion deal. Noble shares rose 6.1%.
Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored advancers.
The S&P 500 posted 19 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 56 new highs and 177 new lows.
Volume on U.S. exchanges was 10.39 billion shares, compared with the 12.80 billion average for the full session over the last 20 trading days.
MSCI’S global equities index edged higher on Monday while investors waited for key U.S. inflation data and central bank policy meetings but the euro fell after French President Emmanuel Macron called a snap election.
U.S. Treasury yields rose as investors digested Friday’s labor market data and looked toward consumer price data and a Federal Reserve policy announcement this week. Investors are also waiting on Bank of Japan policy news.
Adding further uncertainty to a busy week was fresh political uncertainty in the euro zone’s second-biggest economy after far-right gains in European Parliament elections on Sunday prompted a bruised Macron to call a national election.
The euro fell to a one-month low against the dollar, while European stocks slipped.
“There’s a little bit of uncertainty coming from a couple of areas. Look at the elections over the weekend in Europe. The uncertainty there is creating a fair amount of volatility,” said Chad Oviatt, director of investment management at Huntington National Bank.
Europe’s STOXX 600 index earlier closed down 0.27% while France’s blue-chip CAC 40 index .FCHI fell 1.4% to touch a more than three-month low.
But MSCI’s gauge of stocks across the globe turned from red to green as the day wore on and Wall Street regained some lost ground. The global index was last up 0.75 points, or 0.09%, at 794.99.
On Wall Street, the S&P 500 and the Nasdaq composite managed to mark their second record closing highs in four days.
The Dow Jones Industrial Average rose 69.05 points, or 0.18%, to 38,868.04, the S&P 500 gained 13.80 points, or 0.26%, to 5,360.79 and the Nasdaq Composite gained 59.40 points, or 0.35%, to 17,192.53.