U.S. Major Averages Advance In Cautious Trading Ahead of Inflation Reports

Barry Adams
13 May, 2024
New York City

Market sentiment in New York was positive in Monday's trading as investors looked forward to the release of inflation reports later in the week. 

The S&P 500 index and the Nasdaq Composite edged 0.3% higher in early trading amid interest rate uncertainty and worries of resurgent inflation. 

Consumer price inflation has slowed from a peak of over 9% to close to 3%, but prices are still rising despite multiple rate hikes. 

Annual consumer price inflation in April is expected to rise to 3.3%, and core inflation is estimated to advance to 3.5%, according to a survey of economists conducted by Ticker.com. 

The Federal Reserve has clarified that rates are not likely to rise, at least for now, but policymakers have struggled to bring down inflation to its long-term goal of 2%. 

Moreover, wage inflation is still close to 4.5% over the last year, inconsistent with the Federal Reserve's inflation goal. 

Investors are still hoping that the Federal Reserve will lower interest rates, despite the several recent updates on retail sales, durable goods orders, new home sales, nonfarm payrolls, and GDP suggesting healthy economic growth and moderating but tight labor market conditions. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,254.09, and the Nasdaq Composite fell 0.3% to 16,384.14. 

The yield on 2-year Treasury notes edged lower to 4.86%, 10-year Treasury notes inched lower to 4.48%, and 30-year Treasury bonds edged lower to 4.63%.

WTI crude oil increased $0.54 to $78.80 a barrel, and natural gas prices decreased 1 cent to $2.24 a thermal unit.

Gold increased by $15.12 to $2,344.03 an ounce, and silver rose 17 cents to $28.27. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.35.

 

U.S. Stock Movers

GameStop Corp. soared 33% to $23.30 after the 2021 meme stock rally leader with the screen name "Roaring Kitty" posted his first social media post since 2021. 

SquareSpace soared 13% to $43.15 after the e-commerce platform operator agreed to go private in an all-cash deal valued at $6.9 billion. 

The company's board agreed to a $44-a-share cash offer, and the company's chief executive, Anthony Casalena, will continue to lead the company and the board.