Stocks steady after S&P 500’s landmark close

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US stocks opened trading little changed on Monday after the S&P 500 index notched a historic close, as investors prepared for the first key inflation update of the year and the next wave of earnings reports.

The S&P 500 (^GSPC) clung to the flatline following a record-setting week that saw the benchmark end above 5,000 for the first time. The Dow Jones Industrial Average (^DJI) dipped slightly, while the tech-heavy Nasdaq (^IXIC) traded broadly steady.

Stocks have gained as the market embraces a clutch of better-than-expected corporate results, with big tech names driving the lion’s share. Eyes are on the next batch of quarterly reports, with John Deere (DE), Coca-Cola (KO), Airbnb (ABNB), and Kraft Heinz (KHC) serving as highlights on the docket in coming days.

But the week will bring a new challenge to the rally, with the January reading of the Consumer Price Index due Tuesday. The CPI report will give investors their first insight into how cool inflation is running in 2024 and, alongside an update on consumer spending, will set expectations for the timing and pace of Federal Reserve interest-rate cuts this year.

Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards

Traders have scaled back bets on a March rate cut as a stream of warnings from cautious Fed officials ring in their ears. Monday brings more Fedspeak, with regional presidents Michelle Bowman, Tom Barkin, and Neel Kashkari scheduled to appear.

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  • Stocks steady after S&P 500’s record-setting week

    The S&P 500 (^GSPC) opened near the flatline on Monday following a record-setting week that saw the benchmark end above 5,000 for the first time ever.

    The Dow Jones Industrial Average (^DJI) fell 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) traded broadly steady.

    Energy, Real Estate and Materials were among the sectors eking out gains on Monday. Technology and Healthcare stocks dipped slightly.

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