It was a low-key start to the week for stocks. But while today's price action was muted, there is plenty of activity occurring later this week that could spark big moves for stocks.
The main indexes chopped between positive and negative territory throughout the session. At the close, the Nasdaq Composite was down 0.07% at 14,241, the S&P 500 was off 0.2% at 4,550, and the Dow Jones Industrial Average was 0.2% lower at 35,333.
Today's price action "suggests a market that is digesting four weeks of gains and focused on a week of important Fedspeak and a host of key economic data, particularly the release of the Personal Consumption Expenditures Price (PCE) index, which could have an important impact on interest rates," says Quincy Krosby, chief global strategist for LPL Financial.
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.
Fed's favorite inflation data will be released Thursday
The PCE index is the Fed's preferred measure of inflation and the October data will be released Thursday morning. Market participants are especially keen to see the results of this report, especially in the wake of the October Consumer Price Index (CPI) and Producer Price Index (PPI), which showed inflation is easing.
That data has helped fuel a major rally in stocks this month as the "market appears to have embraced the idea that slowing economic data will hasten the arrival of market-friendly rate cuts, even though the Fed has continued to telegraph otherwise," says Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley.
Indeed, futures traders are pricing in a 42% chance of a quarter-point rate cut in May, according to CME Group. However, the Fed's most recent dot plot indicated that most members support higher-for-longer interest rates.
Wall Street will watch for more hints on interest rates when Fed Chair Jerome Powell speaks Friday morning. "If he dishes out dovish comments, investors may finish the week by enthusiastically stocking up on equities and bonds," says José Torres, senior economist at Interactive Brokers. However, Powell runs the risk of disappointing investors if he keeps the door open for more rate hikes," Torres adds.
Shopify stock sizzles on "epic" Black Friday sales
Higher prices didn't keep consumers from spending big this Black Friday. According to Adobe Analytics, online shoppers spent a record-high $9.8 billion, up 7.5% year-over-year, on the biggest shopping day of the year. Adobe expects another $12 billion in online sales will happen on Cyber Monday (which is today).
One beneficiary of these booming online sales is e-commerce merchant platform Shopify (SHOP). The company said its merchants saw a combined $4.1 billion in global Black Friday sales, up 22% year-over-year. "Another epic, record-breaking Black Friday in the books for Shopify merchants," said Harley Finkelstein, president of Shopify, in a press release. "The world showed up for our merchants, and the excitement is only building, with Cyber Monday still to come."
Shares of Shopify jumped 4.9% Monday, but then SHOP investors are used to this sort of action by now. The growth stock is up more than 112% in 2023 and is now trading at its highest level since March 2022. E-commerce stocks Amazon.com (AMZN, +0.7%) and MercadoLibre (MELI, +4.2%) also enjoyed notable gains today.
Related content
- When Is the Next CPI Report?
- Your Backup Gmail Account Could Disappear This Week
- Why Tesla Sued the Swedish Transportation Agency and Postal Service
-
Are COVID Shots Still Covered By Medicare?Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in GoldInvesting in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market TodayThe Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
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.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market TodayApple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Stocks Slip as Job Growth Stalls: Stock Market TodayThe August jobs report came in much weaker than expected, while the unemployment rate ticked higher.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market TodayThe S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
