A trader works on the trading floor of the New York Stock Exchange.
NYSE
Stock markets saw sharp fluctuations on Monday as investors awaited key inflation data.
The S&P 500 rose 0.2%, while the Nasdaq-Composite rose 0.5%, with the broader market swinging between gains and losses. Nvidia shares rose 5%, helping the tech-heavy index rise. The Dow Jones Industrial Average lost 101 points, or 0.2%.
Upcoming inflation data will be crucial for markets that remain jittery after increased volatility. The July consumer price index report released on Wednesday will be a key indication of whether the economy remains solid or whether investors remain unsettled after the weak July nonfarm payrolls report that contributed to the recent wave of selling.
“We are optimistic that a near-term bottom was reached or was close to being reached on August 5, when the S&P 500 closed 8.5% below its peak (within the range of a normal/healthy 5-10% decline) and key technical support levels held,” Lori Calvasina, head of global equity strategy research at RBC Capital Markets, wrote on Monday. “But we remain vigilant as choppy conditions will persist for a while, and do not rule out a growth scare if economic data releases continue to disappoint.”
On Friday, all major averages rose to end the week, but stopped just short of a full recovery. Dow ended the week down 0.6%, while the S&P500 ended with a loss of just 0.04%, and the technology-heavy Nasdaq-Composite closed with a loss of 0.18%. Wall Street began last week with a sharp sell-off amid growing concerns about a slowdown in U.S. economic growth.
“Emotions are running high and market swings tend to pile up, so I wouldn’t be shocked if there was another week of turbulence,” Callie Cox, chief market strategist at Ritholtz Wealth Management, told CNBC. “People are starting to prepare for a recession even though there hasn’t been a crisis yet. Fear often works in favor of us as stock market investors. Further relief rallies seem possible if economic data holds up, and interest rate-sensitive sectors could continue to drive the market higher.”
Wall Street is also expected to release the producer price index report for July on Tuesday. Retail sales for July will also be released on Thursday.
