Wall Street stocks traded largely lower on Monday as investors took a cautious approach ahead of key US inflation data, which is due to come out later this week, while a fresh surge in crude oil prices added to concerns over the inflation outlook. In early trading, the Dow Jones was down 0.2% at 53,937.14, while S&P slipped 0.1% to 7,753.90. The Nasdaq also fell 0.2% to 26,638.35.
Investors turned cautious after assessing rising oil prices and are looking ahead to a busy week, where the latest US consumer and wholesale inflation figures and July retail sales data will be revealed. The numbers could provide fresh clues about the US economy and the Federal Reserve’s next moves on interest rates.
The rise in oil prices is particularly important for investors because higher energy costs can contribute significantly to inflationary pressures. Markets are already waiting for the latest inflation numbers to assess whether the Federal Reserve has enough room to ease monetary policy.
Investors are also assessing the effects of last week’s weaker-than-expected US jobs data. The disappointing employment figures had led markets to reassess expectations around the Fed’s interest-rate path. Meanwhile, the yield on the 10-year US Treasury note rose to 4.68% from 4.65% on Friday.
Varex Imaging jumped 48.3% after Teledyne Technologies announced plans to acquire the X-ray imaging components maker for $18.90 per share.
With inflation data, oil prices and monetary policy all in focus, investors are likely to remain cautious during the week.
The direction of US inflation could prove particularly important for markets trying to determine how much room the Federal Reserve has to adjust interest rates in the months ahead.
