Jennifer Sor
Brendan McDermid/Reuters US stocks edged higher on Monday as investors tried to shake off the worst weekly sell-off of 2023. All three indexes ended the day in the green, recovering some losses after last week’s PCE report. Bond yields ticked down. The 2-year Treasury yield last week touched its highest level since 2007. US stocks rose on Monday, bouncing back after the worst weekly sell-off of 2023. All three indexes ended the day higher, recovering some of the losses after the Federal Reserve’s preferred inflation measure came in higher than expectations on Friday.
Stubborn inflation is fueling the market’s expectations for future rate hikes, which could continue to weight on stocks. Investors are currently pricing in 25 basis-point rate hikes at the next two meetings, but commentators say that a 50 basis-point increase isn’t off the table at the March meeting after January’s Personal Consumption Expenditures report showed inflation is still running hot.
Durable goods orders also declined 4.5% in January — a potential sign of economic weakness, as Americans are spending less on high-cost items. Investors are eyeing earnings reports this week from retail giants Target, Costco, and Macy’s to serve as additional barometers of economic health.
Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:
S&P 500: 3,982.35, up 0.31% Dow Jones Industrial Average: 32,889.29, up 0.22% (72.37 points)Nasdaq Composite: 11,466.98, up 0.63% Here’s what else is going on:
The stock market bubble has burst, and investors who are betting on a rally are in denial, according to Richard Bernstein Advisors.The Fed needs to crush consumer demand with higher interest rates if it’s going to get inflation under control, Bank of America said.”Big Short” investor Steve Eisman warned that tech stocks are no longer the key to outperforming markets.Cathie Wood’s Ark Invest snapped up another $9 million in Coinbase stock as the crypto exchange slipped on hot inflation data. The US has a 60% chance of avoiding a recession, and stocks could notch a new all-time high this year, according to veteran strategist Ed Yardeni.Russian oil is being sold way above the EU price cap, according to a new research paper.Oil demand is soaring to record highs this year, and crude oil could rebound to $100 a barrel, a top energy trader said.JPMorgan warned that higher interest rates for longer will keep downward pressure on the stock market.In commodities, bonds, and crypto:
Oil prices slipped, with West Texas Intermediate down 0.92% to $75.62 a barrel. Brent crude, the international benchmark, inched lower 1.1% to $82.25 a barrel.Gold edged 0.34% higher to $1,817.23 per ounce.The 10-year Treasury yield slipped two basis points to 3.92%Bitcoin fell 1.4% to $23,226.40. Read next
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