NEW YORK (AP) — Wall Street is hovering at record highs to start the week, with more full corporate earnings and the latest government inflation numbers.
The S&P 500 fell 0.2% on Monday afternoon. The benchmark index is 0.7% away from its July record. The Dow Jones Industrial Average rose 129 points, or 0.3%, to 41,303 as of 1:07 p.m. ET. He is well on his way to breaking a record.
The Nasdaq fell 0.7%. It has been weighed down by several technology companies, which tend to influence the market balance due to their high values. Microsoft fell 0.7%.
Oil prices rose 3% after Israel and the Lebanese militant group Hezbollah exchanged heavy shelling on Sunday, raising possible concerns about supplies.
Bond yields have remained relatively stable. The 10-year Treasury yield rose to 3.81% from 3.80% late Friday.
Investors are in for a busy week, which began Monday with a surprisingly good report showing that orders of durable goods from U.S. factories, including automobiles, rose 9.9% in July. An update on consumer confidence is expected on Tuesday and the United States will provide a revised estimate of second-quarter economic growth on Thursday.
The semiconductor company Nvidia will publish its latest financial results on Wednesday. The company was a big beneficiary of Wall Street's artificial intelligence mania, becoming one of the most valuable companies on the stock market with a total value of more than $3 trillion. Its shares fell 2.3% on Monday but are up 155% so far this year.
Other reports this week include Kohl's, Chewy, Salesforce and Dollar General.
This week's most important report for investors will be released on Friday when the government releases its latest PCE inflation data or personal consumption and spending report for July. This is the Federal Reserve's preferred measure of inflation.
Federal Reserve Chairman Jerome Powell made it clear Friday that the central bank plans to begin cutting its key interest rate, which is currently at its highest level in two decades. The Federal Reserve raised interest rates to bring inflation to its 2% target. The final push towards the goal was elusive.
Inflation has been gradually declining and economists surveyed by FactSet expect the latest PCE data to show inflation at 2.6%. PCE reached 7.1% in mid-2022.
The Federal Reserve has tried to control inflation by slowing economic growth, but not to the point of causing a recession. The dynamics of their concerns have changed.
"Recent comments from conversations with Fed officials indicate they are more concerned about the risk of a slowdown in the economy," said Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management.
Traders expect a rate cut at the Federal Reserve's September meeting. According to the CME Group, they expect the central bank to cut its key interest rate by at least one percentage point by the end of the year.
Damian J Troise, Associated Press
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