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."
Sign up for Kiplinger’s Free E-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
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade DealThe two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: S&P 500 Nabs Longest Win Streak Since 2004The stock market's rebound from its mid-April tariff-induced lows has been nothing short of impressive.
-
Stock Market Today: Dow Drops 971 Points as Powell Pressure Ramps UpPresident Trump is increasing his attacks against Jerome Powell, insisting the Fed chair cut interest rates.
-
The Stock Market Is Selling Off. Here's What Investors Should DoInvestors started fleeing the equities market en masse in response to the Trump administration's "jaw-dropping" tariffs. But the experts say don't panic.
-
Stock Market Today: Markets Celebrate Trump's Tariff DétenteConsumer discretionary stocks led 10 of the 11 S&P 500 sector groups well into the green.
-
Stock Market Today: Stocks Skid Into Another Risk-Off TurnThe promise of the AI revolution can't overcome flickering hopes for a "Fed put."
-
How Amazon Stock Became a Member of the 100,000% Return ClubAmazon's wide moat is one reason it has generated a 100,000%-plus return for investors over the long haul.
-
Stock Market Today: Stocks Pop on Time-Delayed TariffsAll three major U.S. equity indexes rallied to intraday highs following President Trump's latest trade moves.
