The stock market displayed some inconsistencies today with the major averages pulling away from their initial advantages and fluctuating throughout the trading day. As it stands, the Dow has increased by 26.58 points (0.1%) to stand at 38,930.62, while the Nasdaq has risen by 9.58 points (0.1%) settling at 16,258.10, and the S&P 500 improved by 3.10 points (0.1%) to reach 5,207.44.
Traders appear hesitant to make any substantial moves ahead of this week's release of key inflation data. There may also be fewer investors active today due to the total solar eclipse, with some likely travelling across the country to get a better vantage point.
The Labour Department will release March's consumer and producer inflation reports on Wednesday and Thursday respectively. Analysts anticipate consumer prices will have increased by 0.3% in March, following February's 0.4% rise. Excluding food and energy, core consumer prices are projected to rise by the same percentage in March, following February's 0.4% surge. The yearly rate of consumer price growth is estimated to speed up to 3.4% in March from 3.2% in February, while core consumer price growth is predicted to slow to 3.7% from 3.8%. Producer prices are expected to have risen by 0.3% in March, following a 0.6% rise in February, while its annual rate of growth is predicted to jump to 2.3% from 1.6%.
This inflation data could significantly affect interest rates, with the Federal Reserve stating that slowing inflation will be a key factor in deciding when to cut rates. A deeper insight into this topic can be expected on Wednesday with the release of the Fed's meeting notes.
Most sectors are today exhibiting slight changes only, contributing to the market's overall subdued performance. In contrast, airlines are doing noticeably well with the NYSE Arca Airline Index soaring by 2.4%. Steel stocks are also performing strongly, reflected by the NYSE Arca Steel Index's 2.1% gain. Similarly, the KBW Bank Index rose by 1.5% indicating a strong performance by banking stocks.
In overseas markets, Asia-Pacific stocks mainly rose today, with Japan's Nikkei 225 Index jumping by 0.9% and Hong Kong's Hang Seng Index up by 0.1%, although China's Shanghai Composite Index deviated from this trend, sliding by 0.7%. In Europe, the major markets also trended upwards, with Germany's DAX Index advancing by 0.8%, France's CAC 40 Index increasing by 0.7% and the UK's FTSE 100 Index rising by 0.4%.
In the bond market, treasuries have continued last Friday's significant downward trend. Consequently, the yield on the benchmark ten-year note has risen by 5.0 basis points to 4.428%.
