Major market averages were mixed on Monday as traders awaited key macroeconomic data, including key inflation figures due later in the week.
Early on, the S&P 500 Index (SP500) +0.1%Nasdaq synthetic (Ingredients: IND) was +0.3%and the Dow Jones Index (DJI) was -0.3%.
The 10-year Treasury yield (US10Y) was unchanged at 3.95%. The 2-year Treasury yield (US2Y) fell 2 basis points to 4.04%.
Major market averages ended Friday’s see-saw trading with gains, following a volatile week that saw stocks tumble on worries that the U.S. economy is slipping into recession.
“At the risk of fate, financial markets appear to have shaken off the hysteria of the past week and are ready to return to economists for guidance,” said Paul Donovan of UBS.
Investors will be keeping a close eye on economic reports this week, starting with the July producer price index on Tuesday, followed by the consumer price index on Wednesday and retail sales data on Thursday.
Deutsche Bank’s Peter Sidorov said: “The upcoming inflation data will be critical to whether the Fed has the confidence to send a clearer signal to cut interest rates at its September meeting.”
These economic reports will be closely watched as traders assess the health of the economy in the wake of recession fears and talk about a rate cut by the Federal Reserve.
“The better spending power of middle-income consumers is one reason for caution about an overly pessimistic economic outlook,” Donovan said.
