Extending the lackluster performance observed over the past two sessions, stocks exhibited a lack of direction during trading on Monday. The major averages fluctuated between gains and losses around the unchanged line but eventually concluded modestly higher.
Despite the volatile trading, the Nasdaq and the S&P 500 secured new record closing highs. The Nasdaq ascended 59.40 points, or 0.4%, to settle at 17,192.53, the S&P 500 climbed 13.80 points, or 0.3%, to 5,360.79, and the Dow inched up 69.05 points, or 0.2%, to close at 38,868.04.
Investors appeared hesitant to make significant moves ahead of several key events later this week, including the Federal Reserve’s monetary policy meeting.
The Fed is set to announce its latest monetary policy decision on Wednesday, with expectations that interest rates will remain unchanged.
Given that the decision is largely anticipated, traders will likely focus more on the Fed officials' latest economic and rate projections.
Before the Fed's announcement, the Labor Department is slated to release its report on consumer price inflation for May.
Economists predict consumer prices will rise by 0.1% in May, following a 0.3% increase in April. Core consumer prices, excluding food and energy, are expected to rise by 0.3% for the second consecutive month.
The annual rate of growth for consumer prices is expected to remain steady at 3.4%, while the annual core consumer price growth rate is projected to slow to 3.5% from April's 3.6%.
Reports on producer prices, import and export prices, and consumer sentiment and inflation expectations may also garner attention later in the week.
### Sector Performance
On Monday, oil service stocks surged significantly, pushing the Philadelphia Oil Service Index up by 2.9%, following a notable rise in crude oil prices.
A rise in gold prices also contributed to substantial gains among gold stocks, as indicated by the NYSE Arca Gold Bugs Index’s 1.6% increase.
Semiconductor stocks showed strong performance, resulting in a 1.4% advance in the Philadelphia Semiconductor Index.
Additionally, computer hardware, natural gas, and retail stocks displayed strength, whereas telecom stocks declined notably, extending the steep losses posted last Friday.
### Overseas Markets
In international trading, Asia-Pacific stock markets delivered a mixed performance on Monday, with several markets closed due to holidays. Japan's Nikkei 225 Index rose by 0.9%, while South Korea's Kospi decreased by 0.8%.
Conversely, major European markets moved downward. France's CAC 40 Index dropped 1.3%, Germany's DAX Index fell 0.3%, and the UK's FTSE 100 Index edged down 0.2%.
### Bond Market
In the bond market, treasuries continued to show weakness, following last Friday's sell-off. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, increased by 3.9 basis points to 4.469%.
### Looking Ahead
With a dearth of major U.S. economic data expected on Tuesday, trading may remain light ahead of this week’s key events.
