Inflation US Stocks Concern: S&P and Nasdaq Records Face Uncertain Fate Ahead

New York, NY – US stock markets showed signs of uncertainty on Monday as investors braced themselves for an eventful week ahead, with key indicators potentially influencing the future trajectory of interest rates. The S&P 500 and the tech-heavy Nasdaq Composite were relatively flat, while the Dow Jones Industrial Average experienced a slight decline.

Following record highs reached on Friday, both the S&P and Nasdaq were hoping to build on their recent successes, spurred by a report indicating a cooling labor market. This report has led to speculation among traders, with about 75% of them anticipating a rate cut by the Federal Reserve in September, according to the CME FedWatch tool.

The upcoming week holds several significant events that could further fuel expectations for a rate cut. Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on Tuesday and Wednesday, potentially shedding light on the central bank’s future plans. Additionally, the release of the latest Consumer Price Index on Thursday is expected to show a 3.1% rise in headline inflation over the past year.

In other global market developments, a left-wing coalition in France emerged as the leading party in the country’s election, surprising those who were anticipating a far-right victory. This political shift was reflected in the modest rise of France’s benchmark index.

On the corporate front, Boeing faced legal challenges as the company pleaded guilty to a criminal conspiracy charge related to fatal crashes involving the 737 Max. Despite this, Boeing’s shares saw a slight increase during the session. Meanwhile, Tesla’s stock managed to turn positive after a brief dip, extending its impressive eight-day winning streak.

Overall, market movements and corporate developments continue to capture the attention of traders and investors, shaping expectations and outlooks for the near future. As the week progresses, all eyes will be on key economic indicators and events that could potentially influence market dynamics and trading decisions.