The S&P 500 Index ($SPX) (SPY) on Monday closed down -0.11%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.12%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed -0.37%.
Stocks Monday traded mildly lower on a +2.3 bp rise in the 10-year T-note yield and on caution ahead of Tuesday’s CPI report. A stronger-than-expected CPI report would dampen hopes of a rate cut by the Fed over the near term. The consensus is for Tuesday’s Feb U.S. CPI to be unchanged from Jan at +3.1% y/y, which would be 0.1 point above the 2-3/4 year low of +3.0% posted in June 2023. The Feb core CPI is expected to ease to a new 2-3/4 year low of +3.7% y/y from Jan’s current 2-3/4 year low of +3.9% y/y.
