US Stocks Mixed as Investors Eye Inflation Data and Geopolitical Tensions
U.S. stocks showed mixed performance at the start of the week, with investors closely watching upcoming inflation data and geopolitical developments. The S&P 500 edged down slightly to 6,084.15, while the Dow Jones Industrial Average inched up to 44,654.60. The Nasdaq composite also saw a marginal increase, reaching 19,861.26.
Nvidia shares experienced a notable drop following news of an antitrust probe in China. The investigation, centered on Nvidia’s acquisition of Mellanox, pushed the company’s stock down to $139.57 after the opening bell.
Market attention is primarily focused on the upcoming consumer price index (CPI) data, set to be released later this week. November’s inflation figures are expected to play a crucial role in shaping the Federal Reserve’s interest rate decisions. Economists anticipate a slight increase in the year-over-year CPI to 2.7%, up from 2.6% in October.
Bank of America economists predict a 0.2% month-over-month increase in Core CPI. Currently, markets are pricing in an 86% chance of a 25 basis point rate cut by the Federal Reserve at its next meeting.
Geopolitical tensions have also impacted markets, particularly in the energy sector. The toppling of Assad’s regime in Syria and the subsequent flight of Assad and his family to Russia have introduced new uncertainties. As a result, energy prices have risen, with West Texas Intermediate crude oil climbing to $68.30 per barrel and Brent crude reaching $72.14 per barrel.
In other market movements, gold prices increased to $2,687.90 an ounce, while the 10-year Treasury yield remained steady at 4.173%. The cryptocurrency market saw some volatility, with Bitcoin declining to $99,060.
As markets navigate these various factors, investors are also considering broader economic challenges, including those facing the incoming Trump presidency and the financial pressures on Generation X. The week ahead promises to be pivotal as new economic data emerges and geopolitical situations continue to unfold.
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