Stocks struggled for direction Monday. Market participants are cautious looking ahead to a busy batch of economic data. Most notable in this week's lineup is Friday's release of the Federal Reserve's preferred inflation measure, especially after the central bank last week forecast higher-for-longer interest rates.
The next inflation reading comes Friday morning with the August personal consumption and expenditures (PCE) index, which measures consumer spending. The latest readings on personal income and spending will also be released.
This confluence of economic reports, as well as the resumption of student loan repayments and a possible government shutdown could "create amplified market volatility," says Mark Hackett, chief investment officer of Nationwide. "Investors should brace for a week that could redefine market sentiment and strategy for the quarter ahead."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Today, though, the price action was relatively muted with the major indexes bouncing between positive and negative territory throughout Monday's session. At the close, the Nasdaq Composite (+0.5% at 13,271), the S&P 500 (+0.4% at 4,337) and the Dow Jones Industrial Average (+0.1% at 34,007) were all modestly higher.
Amazon's $4 billion AI investment
Amid a relatively bare economic calendar, investors took in single-stock news. Amazon.com (AMZN) sparked several headlines after it announced a collaboration with Anthropic, an artificial intelligence (AI) startup. As part of the deal, Amazon will invest $4 billion in Anthropic, taking a minority stake in the firm. Meanwhile, Anthropic will use Amazon Web Services (AWS) as its primary cloud provider.
AMZN shares climbed 1.7% Monday, while fellow mega-cap stocks Apple (AAPL, +0.7%) and Nvidia (NVDA, +1.5%) also gained ground.
Williams-Sonoma (WSM) was another big mover with shares rising 11.6% after regulatory filings revealed Green Equity Investors increased its passive stake in the home goods retailer to 5%. Today's gains just add to the consumer discretionary stock's impressive year-to-date return, with WSM up roughly 36% vs a 13% return for the broader market.
Energy stocks keep climbing
Energy stocks were also a pocket of strength Monday, with the sector outperforming (+1.3%) even as U.S. crude futures fell 0.7% to $89.42 per barrel. Oil and gas companies Coterra Energy (CTRA, +2.0%) and EOG Resources (EOG, +2.5%) were two notable gainers.
"Energy stocks are now reasserting their market leadership after gasoline prices in August rose 10.5% in the Consumer Price Index (CPI) and a whopping 20% in the Producer Price Index (PPI)," says Louis Navellier, chairman and founder of Navellier & Associates. In addition to an acute inventory decline, "there is a diesel shortage again, especially in Europe, so the U.S. is exporting more distillates, which is causing the trade deficit to decline and boost gross domestic product (GDP) growth."
Related content
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Dow Trims Its Loss to 498 Points: Stock Market TodayMarkets are wondering more and more about returns on the enormous amounts of capital hyperscalers are investing in AI.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
5 Core Stocks Every Investor Should Own In 2026 and BeyondCore stocks are solid, long-term investments that provide stable returns and steady growth within your portfolio. Here are 5 we like.
