Major U.S. stock indices opened modestly lower on Monday, pausing after six consecutive weeks of gains as investors prepared for key economic data due this week, including April's Consumer Price Index and retail sales reports.
At the open, the Dow Jones Industrial Average was down approximately 0.1%, the S&P 500 declined 0.1%, and the Nasdaq Composite dipped slightly by 0.1%. Market sentiment was dampened by uncertainties surrounding the Middle East situation. Over the weekend, U.S. President Trump rejected Iran's peace proposal response, labeling it "completely unacceptable," which drove oil prices up by about 3%. Rising energy costs added further pressure to the stock market.
The core focus for the market this week will be the April CPI data scheduled for release on Tuesday. Economists anticipate the year-over-year CPI increase will rise to 3.7% from 3.3% in March, with a month-over-month increase of 0.6%. Core CPI is expected to show a year-over-year rise of 2.7% and a month-over-month increase of 0.3%. If inflation figures exceed expectations, it could further reduce market bets on the Federal Reserve cutting interest rates this year. Additionally, the April retail sales data, due on Thursday, is also closely watched, with the month-over-month growth rate projected to slow to 0.5% from 1.7% in March.
On the earnings front, Cisco, Alibaba, and Applied Materials are set to report their results this week. Meanwhile, Federal Reserve Chair Jerome Powell's term concludes on Friday. The Senate is expected to confirm Kevin Warsh as the new chair this week, with the policy transition process also drawing market attention.
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