The S&P 500
ticked lower on Monday as the rally that brought the major averages to record highs cooled off. Investors also looked ahead to fresh U.S. inflation data.
The broad S&P 500 and technology-heavy Nasdaq Composite
each slipped 0.1%. The Dow Jones Industrial Average
last gained lost 12 points, flickering around flat.
Information technology stock Super Micro Computer
dropped more than 3%, while chipmaker Nvidia
swung between gains and losses in another day of choppy trading. Both moves come as investors question if stocks tied to artificial intelligence have more room to run after monster rallies.
Meta
also struggled, with the Facebook parent tumbling more than 3%. Outside of tech, pharmaceutical stock Eli Lilly
dropped more than 4%.
Those losses come as traders prepare for February’s consumer price index due Tuesday. Economists polled by Dow Jones anticipate CPI will rise 0.4% between January and February and 3.1% on an annualized basis. Excluding volatile food and energy prices, the so-called core basket is expect to increase 0.3% on the month and 3.7% on the year.
That comes ahead of the producer-focused index slated for later in the week. The pair is among the last major economic reports expected before Federal Reserve leaders convene for their March policy meeting.
At the end of the day, markets are probably still too optimistic about the Fed’s ability to cut rates significantly in 2024,” said Lara Rhame, chief U.S. economist at FS Investments. “I think the February inflation data will be another reminder that the Fed needs to tread cautiously.”
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