Stocks were shaky to start the week, with the main indexes spending the majority of Monday in negative territory. Investors are on edge ahead of tomorrow morning's release of the February Consumer Price Index (CPI), especially after recent hotter-than-anticipated inflation readings pushed back expectations for the Federal Reserve's first interest-rate cut.
The February CPI "should alleviate concerns that inflation is reaccelerating after the January data," writes Stephen Juneau, economist at BofA Securities, in a note to clients.
Juneau expects the headline CPI to rise 0.4% month-over-month – quicker than January's 0.3% increase – due to rising gas prices. But core CPI, which excludes volatile food and energy prices, is believed to be up 0.3% from January to February, below the prior month's 0.4% reading.
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.
But tomorrow's CPI reading is not the only inflation update on this week's economic calendar. Indeed, the latest retail sales data and the Producer Price Index (PPI) will both be released Thursday morning.
This onslaught of data comes ahead of next week's Fed meeting. According to CME Group's FedWatch Tool, futures traders are currently pricing in a 55% chance of the first quarter-point rate cut occurring in June, up from 42% one month ago.
Snap, Meta tumble after Trump talks TikTok
In single-stock news, social media stocks Snap (SNAP, -4.2%) and Meta Platforms (META, -4.4%) sold off after former President Donald Trump seemingly reversed his stance on China-based short-form video platform TikTok.
Speaking on CNBC's "Squawk Box," Trump, who tried unsuccessfully to ban TikTok in 2020, said he still believes the app is a national security threat, but without it "you can make Facebook [which is owned by Meta Platforms] bigger and I consider Facebook to be an enemy of the people along with a lot of the media."
Trump's comments come as the U.S. House of Representatives is expected this week to vote on a bill that will give TikTok's parent company ByteDance six months to divest the platform or face a complete ban. Lawmakers are concerned that China is using TikTok is gather data on its users, though ByteDance has denied the accusations.
MicroStrategy pops as Bitcoin soars
Elsewhere, MicroStrategy (MSTR) shot up 4.1% after the software company said it bought 12,000 bitcoins in the two weeks ended March 10. MSTR now owns roughly 205,000 bitcoins. Bitcoin, for its part, traded above the $72,000 level for the first time ever.
As for the main indexes, the Nasdaq Composite fell 0.4% to 16,019 and the S&P 500 slipped 0.1% to 5,117. The Dow Jones Industrial Average, however, edged up 0.1% to 38,769 as UnitedHealth Group (UNH) popped 2.7%. At roughly $490 a share, UNH has the greatest weighting of all 30 stocks in the price-weighted Dow.
Related content
- Biden Calls for Doubling Capital Gains Tax
- If You'd Put $1,000 Into Adobe Stock 20 Years Ago, Here's What You'd Have Today
- The Reddit IPO Is Almost Here: Should You Buy Reddit Stock?
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes
"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
Keep Tax Collectors at Bay with Muni Bond FundsMunicipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the FairwayThink of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
-
Just Sold Your Business? Avoid These Five Hasty MovesIf you've exited your business, financial advice is likely to be flooding in from all quarters. But wait until the dust settles before making any big moves.
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Bonds Right Now?Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
