Wall Street indexes rested a day after registering strong gains as investors debated inflation outlook and rate path in the months ahead. The latest updates on retail sales and weekly jobless claims confirmed resilient consumer spending and strong labor market conditions. The euro hovered near parity with the U.S. dollar, and China's fourth quarter GDP growth is estimated to accelerate to 5%.
Financial markets lacked direction across the Atlantic as investors awaited the release of the U.S. consumer price inflation report on Wednesday. The U.S. dollar continued to advance against major currencies, reflecting speculation that the yield gap between the U.S. bonds and international trade partners is likely to widen.
The S&P 500 index and the Nasdaq Composite are set to advance more than 20% for the second consecutive year in 2024 amid optimism about economic growth and sustained labor market expansion.
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