U.S. stocks closed flat on Monday after giving up earlier gains as investors neared the final stretch of the earnings season and braced for a packed week of inflation data.
The S&P 500 slipped into negative territory on Friday, down 0.1% on the session after the benchmark index posted a three-week gain. The Nasdaq fell by about the same margin on Nvidia’s economic warning (NVDA) was drawn on technology peers. The tech-heavy index fell from gains of up to 1% in intraday trading. Meanwhile, the Dow Jones Industrial Average rose about 0.1%.
Breast stocks rose on Monday despite no news to raise the stakes. Bed, Bath and Extra (BBBY) rose to 50%, while GameStop (GME) and AMC (AMCr) each increased by approximately 12% and 17% respectively. The moves come amid renewed attention to the name on Reddit’s Wallstreetbets message board.
In other markets, Nvidia shares (NVDA) decreased by about 7% after the company said its revenue would fall 19% in the second quarter from the previous quarter. The warning comes as the gaming business sees more consumers buying less discretionary items like laptops and video game consoles.
Shares mixed ends The U.S. economy added more than twice as many jobs as expected in July after a blistering jobs report on Friday. This was reported by the Department of Labor Nonfarm payrolls rose by 528,000 last monthIt renews concerns that the Federal Reserve may continue aggressive interest rate hikes to slow demand and lower inflation.
“This likely suggests that near-term downside risk is diminishing, but in our view, the strong data raises the risk of a tough downside over time given that the Fed has more work to do,” Bank of America economists led by Michael Gapen said in a note on Friday. he said in the note.
The bank also revised its rate hike forecasts by an additional 25 basis points, calling for 50 basis points hikes in both September and November and 25 basis points in December.
Investors are focused on three big inflation readings this week: the all-important Consumer Price Index (CPI), the Producer Price Index (PPI), and unit labor costs, a measure of all wages paid to workers.
The closely watched CPI index for July, due out on Wednesday, is expected to be slightly weaker than last month’s reading, helped mainly by lower gas prices. However, the figure is still expected to mark the fastest rise in inflation in four decades.
Economists polled by Bloomberg forecast the broadest measure of CPI rose 8.7% in July, which would mark a slight cooling from June’s 9.1%. For the month, CPI is expected to increase by 0.2% from 1.3% last month.
Earnings season is winding down, with about 87% of the companies in the S&P 500 reporting current second-quarter results. But bigger reports are still set to be released, with earnings from names including Disney, (DIS), Coinbase (CORNER), Tyson Foods (TSN) and Rivian Automotive (RIVN) find this week.
Alexandra Semenova is a correspondent for Yahoo Finance. Follow him on Twitter @alexandraandnyc
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