New York, NY – US stocks showed signs of pausing on Monday after a whirlwind week at record highs, with investors preparing for an upcoming inflation update that may test the current rally. The Dow Jones Industrial Average closed down 0.2%, while the S&P 500 fell 0.4% after reaching new closing highs last week. The Nasdaq Composite also dropped 0.1% following a strong showing from tech stocks.
Inflation data expected in the coming days will be a key factor in determining the resilience of the recent market rally sparked by Nvidia’s impressive results. A hotter-than-expected CPI report in February led to a stock sell-off, prompting investors to anticipate a surprise in Thursday’s PCE index reading. The reading on the PCE index, the Federal Reserve’s preferred measure of inflation, will influence ongoing discussions about the timing of a potential rate cut.
This week’s highlight is the inflation report, with additional data on consumer sentiment and manufacturing performance also set to be released. The outcomes of these reports will provide insight into the overall health of the US economy and could impact the continued bullish sentiment in the stock market.
Berkshire Hathaway inched closer to a $1 trillion market value after reporting a record annual