Stocks saw a mix of highs and lows in early trading on Monday, however, as the day progressed, there was a modest rise in the market. Rebounding from the previous Friday, all the major averages experienced growth.
The Nasdaq and S&P 500 hit new highs during recent trades. With an increase of 72.57 points or 0.5 percent, the Nasdaq stands at 16,321.09. The S&P 500 saw an uptick of 14.58 points or 0.3 percent, reaching 5,218.92, and the Dow also grew by 63.09 points or 0.2 percent to 38,967.13.
Investors are turning their attention back to the stock market which had seen a significant slump last Thursday, pushing the Dow to its lowest closing point in a month. Despite a strong recovery during last Friday's session, the major averages finished the week on a lower note.
Last week, the Dow dropped by 2.3 percent, the S&P 500 by 1.0 percent, and the Nasdaq by 0.8 percent. While trading activity is experiencing a lull, many investors are awaiting the release of critical inflation data expected later this week.
A few investors might also be unavailable today due to travels across the country to witness the total solar eclipse. Reports on consumer and producer inflation for March are due from the Labor Department on Wednesday and Thursday, respectively.
Economists predict a rise of 0.3 percent in consumer prices for March, following a 0.4 percent increase in February. Excluding food and energy prices, core consumer prices are expected to rise by 0.3 percent in March after a 0.4 percent increase in February.
Consumer price growth is expected to quicken to 3.4 percent in March, up from 3.2 percent in February. However, the rate of growth for core consumer prices is expected to slow to 3.7 percent from 3.8 percent. Producer prices are anticipated to grow by 0.3 percent in March after a 0.6 percent increase in February, with the annual rate of growth predicted to jump to 2.3 percent from 1.6 percent in the same month.
This inflation data could influence the future of interest rates, as Federal Reserve officials have mentioned their need for more assurance that inflation is diminishing before they decide to cut rates. Minutes from the latest Federal Reserve monetary policy meeting, which could further illuminate their stance on rates, will be released on Wednesday.
Airline stocks are currently outperforming other sectors in the market, with the NYSE Arca Airline Index jumping by 2.4 percent. Steel stocks are also performing well, as reflected in the 1.5 percent gain by the NYSE Arca Steel Index. Banking, semiconductor, and commercial real estate stocks are similarly up, while gold stocks are down due to a small decline in the precious metal's price.
Internationally, stock markets across the Asia-Pacific region, primarily Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index, largely improved on Monday. However, China's Shanghai Composite Index fell by 0.7 percent. European markets also moved upwards, with the German DAX Index and the French CAC 40 Index up by 0.7 percent and 0.8 percent, respectively, and the U.K.'s FTSE 100 Index rising by 0.3 percent.
In the bond market, treasuries extended Friday's significant decline, resulting in a yield increase of 4.4 basis points on the benchmark ten-year note, which moves inversely to its price, bringing it up to 4.422 percent.
