Investors trod cautiously on Monday, with Wall Street showcasing a slight downturn at the start of the new week, failing to bounce back from the losses incurred on Friday. Their apprehension stems from the looming release of February’s inflation figures scheduled for Tuesday.
As the clock struck noon in New York, all significant U.S. stock indices exhibited declines, with small caps notably trailing behind their larger counterparts.
In the realm of Treasury yields, the 2-year yields, a key indicator of policy adjustments, saw a modest uptick of 5 basis points to 5.53%. Traders are bracing for the Federal Reserve to potentially adopt a less dovish stance following the release of the Consumer Price Index (CPI) data and the forthcoming FOMC meeting.
Economists are anticipating stable annual inflation figures for February, pegging it at 3.1%, while core inflation is foreseen to dip to 3.7%.
On the data front, the New York Fed saw unchanged median inflation expectations at 3.0% for the one-year horizon. However, expectations rose for the three-year and five-year horizons, indicating growing concerns about future inflation.
Market sentiment has somewhat cooled towards the possibility of a rate cut by June, now gauged at 72%, a decline from 80% the previous week.
While Gold experienced a brief respite, the surge of Bitcoin continued unabated, catapulting past the $72,000 mark as U.K. regulators eased constraints on exchange-traded products (ETPs).
Performance Snapshot of Major US Indices and ETFs on Monday
| Major Indices & ETFs | Price | Chg % |
| Dow Jones | 38,694.72 | -0.1 % |
| S&P 500 | 5,116.71 | -0.1 % |
| Nasdaq 100 | 17,975.50 | -0.2% |
| Russell 2000 | 2,073.75 | -0.5% |
The SPDR S&P 500 ETF Trust SPY declined by 0.1% to $510.79, while the SPDR Dow Jones Industrial Average DIA slipped 0.1% to $387.70. Additionally, the tech-heavy Invesco QQQ Trust QQQ fell by 0.3% to $437.65, according to Benzinga Pro data.
Sector-wise, the Materials Select Sector SPDR Fund XLB emerged as the top performer, clinching a 0.9% gain, while the Industrials Select Sector SPDR Fund XLI lagged behind, registering a 0.7% decline.
Key Stock Movements on Monday
- Meta Platforms Inc. META plummeted nearly 4% after Donald Trump criticized Facebook as an “enemy of the people.”
- Marvell Technology Inc. MRVL tumbled over 5%, extending the downward trajectory post a disappointing quarterly outlook revealed on Friday.
- Moderna Inc. MRNA surged by 8.7%, while EQT Corp. EQT slumped over 5% as measures to streamline costs and enhance gas delivery control were announced. Analysts flag EQT’s absorption of around $6 billion in debt as natural gas prices remain at historic lows.
- Asana, Inc. ASAN, Casey’s General Stores, Inc. CASY, Oracle Corp. ORCL, and Vail Resorts, Inc. MTN are some notable firms set to report quarterly results post-market closure.
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