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
Be a smarter, better informed investor.
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
-
The Rubber Duck Rule of Retirement Tax PlanningRetirement Taxes How can you identify gaps and hidden assumptions in your tax plan for retirement? The solution may be stranger than you think.
-
No Passport? No Problem. Seven US Getaways That Feel Like an International VacationFrom Puerto Rico’s Caribbean flair to Santa Fe’s old world charm, these American destinations deliver a global travel experience — without the hassle of customs or currency exchange.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
Stocks Fall Again as Big Tech Struggles: Stock Market TodayThe economic calendar was a bright spot for Wall Street Wednesday, with new home sales climbing to a three-year high.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
Stocks Drop on Mag 7 Weakness: Stock Market TodayThe main indexes retreated from all-time-high territory as several of Wall Street's biggest stocks declined.
-
Dow Hits New Intraday High on Fed Day: Stock Market TodayNot even the most important stock in the world could keep the oldest equity index down on a significant day for markets.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
