Stocks were mixed on Monday, with the Dow Jones Industrial Average snapping its eight-day winning streak, as market participants were concerned over rising negative consumer sentiment. The 30-stock average fell more than 80 points, while the S&P 500 Index closed below the flatline and the Nasdaq Composite rose about 0.3%.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): -0.02% or -1.26 points to 5,221.42
Dow Jones Industrial Average (NYSE: DIA): -0.21% or -81.33 points to 39,431.51
Nasdaq Composite Index (NASDAQ: QQQ): +0.29% or +47.37 points to 16,388.24
Moving Markets:
The New York Federal Reserve survey released Monday showed consumers have raised their expectations for price increases for both the near- and long-term.
On a one-year basis, the expectation raised to 3.3%, up 0.3 percentage point from March and reaching its highest level since November. For the five-year outlook, the expectation rose to 2.8%, up 0.2 percentage point, while the three-year outlook, however, dipped down 0.1 percentage point to 2.8% in April.
On Monday, Federal Reserve Vice Chair Philip Jefferson said it is "appropriate that we maintain the policy rate in restrivece territory, which is right now," during a Q&A session with outgoing Cleveland Fed President Loretta Mester.
Moveover, Jefferson added that the Fed should "continue to look for additional evidence that inflation is going to return to our 2% target, and until we have that, I think it is appropriate to keep the policy rate in restrive territory."
Making Headlines:
GameStop (NYSE: GME) shares popped higher on Monday after "Roaring Kitty," the username of the man who started the first GameStop short squeeze in 2021, posted on X, formerly known as Twitter, for the first time in about three years; his post implied that he was becoming competitive again on GameStop.
The video game retailer's shares closed up nearly 75% after rallying as much as 110% during the session, with trading halted multiple times throughout the day due to increased volatility. Shares of AMC Entertainment (NYSE: AMC) also settled up 78%, while Reddit (NYSE: RDDT) shares advanced nearly 9%.
Looking Ahead:
This week has two key economic reports that could shed more light on the Fed's next moves towards interest rates this year.
April's producer price index (PPI) reading is due out Tuesday, with analysts expecting prices to have risen by 0.3% month-over-month, with the month's consumer price index (CPI) is set for release on Wednesday, with inflation expected to rise by 0.4% in April and 3.4% year-over-year. Core CPI, which excludes food and energy prices, is also expected to have risen by 0.3% month-to-month and 3.6% year-over-year.
For earnings reports, Home Depot (NYSE: HD), Alibaba (NYSE: BABA) and Sony (NYSE: SONY) are set to release results Tuesday morning.