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?
-
Do You Really Need That Wine Cellar?Home Features Wine cellars are a popular feature in high-end houses. Will installing one in your home increase its value, or would you be better off with a cheaper solution?
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last LongAccording to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
