Major stock indexes on Wall Street gave up early gains and ended a choppy day of trading little changed Monday.
The S&P 500 and Nasdaq each slipped 0.1 per cent after shedding gains of 1 per cent and 1.6 per cent, respectively. The Dow Jones Industrial Average closed 0.1 per cent higher. The Australian sharemarket is set to start the day lower with futures at 5.04am AEST pointing to a fall of 17 points, or 0.3 per cent at the open.
Wall Street has made an uncertain start to the week.Credit:NYSE
Small-company stocks outpaced the broader market in a sign that investors were confident about the economy. The Russell 2000 rose 1 per cent.
The market’s latest gyrations came as investors prepare for a busy week of economic updates that could help answer whether the Federal Reserve’s efforts to cool the economy and quell inflation are working, or whether the central bank will continue aggressively raising interest rates. Wall Street is worried that the Fed could hit the brakes too hard and cause a recession.
“Early indications of inflationary pressures appear to be easing, which will be an important catalyst for the market,” said Quincy Krosby, chief global strategist for LPL Financial.
The S&P 500 fell 5.13 points to 4,140.06, while the Nasdaq slid 13.10 points to 12,644.46. The Dow added 29.07 points to close at 32,832.54. The Russell 2000 rose 19.38 points to 1,941.21.
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The benchmark S&P 500 index is coming off three consecutive weekly gains. Investors remain focused on inflation and its impact on businesses and consumers, along with the Federal Reserve’s efforts to fight higher prices. The central bank has been aggressively raising interest rates to pump the brakes on economic growth and rein in record-high inflation. The Fed is expected to hike short-term interest rates by another 0.75 percentage points at its next meeting.
The Federal Reserve Bank of New York on Monday released a survey of consumer expectations from July showing that there were “substantial declines” in inflation expectations for everything from food and gas to home prices.