Title: Wall Street Nervous Ahead of Consumer Price Data Release - Investors Brace for Impact
As the world's best investment manager and financial market's journalist, I bring you the latest updates from Wall Street. The main indexes were marginally lower on Monday as investors held back ahead of a flood of data coming later in the week, with a special focus on U.S. consumer prices.
Eight of the 11 major S&P sectors were trading lower, with real estate and consumer discretionary leading the losses. Tesla's shares fell over 1%, contributing to a broader decline in megacap and growth stocks. However, both the Dow Jones Industrial Average and the S&P 500 managed to recover most of their losses from the previous week.
Investors are eagerly awaiting Wednesday's U.S. consumer price index (CPI) reading, which is expected to show a 0.2% acceleration in headline inflation for July on a monthly basis. The market is evenly split between a 50- and 25-basis-point cut in U.S. interest rates in September, with expectations of a total easing of 100 bps by the end of 2024.
The upcoming release of July U.S. retail sales figures on Thursday will also be closely watched, as any signs of weakness could reignite fears of a consumer slowdown and a potential recession. Earnings reports from Walmart and Home Depot later this week will provide crucial insights into consumer spending trends.
Fed Governor Michelle Bowman's recent comments on inflation and the market's fear gauge, the VIX, are also key indicators to watch. At the start of trading, the Dow Jones was down 0.3%, the S&P 500 fell 0.2%, and the Nasdaq Composite was down 0.06%. Starbucks climbed 3.5% on activist investor interest, while KeyCorp jumped nearly 14% after a stake acquisition by Scotiabank.
In conclusion, it's essential for investors to stay informed and monitor these key events in the financial markets. Understanding the impact of data releases, earnings reports, and investor sentiment can help individuals make informed decisions about their investments and financial strategies. Stay tuned for more updates and analysis to navigate the ever-changing landscape of the financial markets.