Wall Street started the week with a slight dip as investors turned their focus to upcoming labor market data and Federal Reserve Chair Jerome Powell's testimony before Congress. The S&P 500 slipped 0.1% early Monday after achieving its latest all-time high this year and marking its 16th winning week in the last 18. The Dow Jones Industrial Average fell 151 points, or 0.4%, while the Nasdaq composite edged down 0.1%.
Powell is scheduled to appear before Congress on Wednesday and Thursday for his semi-annual testimony. Investors will closely monitor his remarks for any indications regarding potential interest rate cuts by the Fed. The Federal Reserve has raised its main interest rate to the highest level since 2001 to combat rising inflation following the economic recovery from the 2020 COVID-19 recession.
The Fed may consider multiple interest rate cuts this year, depending on inflation trends. Recent robust economic data has shifted expectations for these cuts from March to June. Key data to be released this week include Wednesday's job openings and labor turnover report, Thursday's jobless claims figures, and Friday's comprehensive February jobs report.
In corporate news, Macy's shares surged over 15% before the opening bell following an increased acquisition offer from investment firms Arkhouse Management and Brigade Capital Management. The revised deal values Macy's at $6.6 billion, up from the initial $5.8 billion offer.
Bitcoin continued its upward trajectory in crypto trading, gaining over 3% to reach $65,126.20. In global markets, Japan's Nikkei 225 breached the 40,000 level, while European markets showed mixed movements with Germany's DAX edging higher, the CAC 40 in Paris rising, and London's FTSE 100 declining.
Asia saw positive movements, with Japan's Nikkei 225 hitting a record high above 40,000, driven by expectations of strong demand for AI technology. Hong Kong's Hang Seng and Shanghai Composite also posted gains. Investors are closely watching China's National People's Congress for updates on economic policies.
On the commodities front, U.S. benchmark crude oil prices dipped slightly, while the 10-year Treasury yield inched up. The U.S. dollar strengthened against the Japanese yen and the euro.
Friday saw the S&P 500 and Dow Jones Industrial Average rising, with technology stocks leading the market. The Nasdaq composite also surged to a new high, reflecting optimism about inflation and the U.S. economy.
