Investing.com – The S&P 500 was unchanged on Monday as investors awaited a key inflation report later this week that will likely play a role in shaping the Federal Reserve’s monetary policy outlook.
At 4 pm ET (2100 GMT), the price was down 81 points, or 0.2%, down 0.02% and up 0.3%.
Wall Street’s major indexes started the new week on a positive note after posting three straight weeks of gains last week, helped by some strong earnings and the prospect of a possible cut in interest rates this year.
Inflation data will dominate market attention
Investor sentiment for risk assets remains cautious as investors await key inflation data this week, due on Tuesday and Wednesday respectively.
The data comes after a series of hotter-than-expected inflation reports in the first quarter that prompted investors to not only abandon bets on rate cuts but also cut the number of cuts expected to two this year.
The data comes just as Fed officials continue to signal interest rate hikes.
Fed Vice Chairman Philip Jefferson said Monday that the current level of interest rates is appropriate until there are further signs that inflation is on a sustainable path toward its 2% target.
Hand takes off in AI plans
Arm Holdings (NASDAQ:) shares gained 7% after announcing plans to develop artificial intelligence chips, according to a Nikkei Asia report, and the British chip designer announced plans to create an artificial intelligence chip division.
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The report states that Arm aims to build a prototype by spring 2025, with mass production likely to be carried out by contract manufacturers, expected to begin in fall 2025.
Intel (NASDAQ:) shares rose more than 2% after the Wall Street Journal reported that the tech giant is in talks with Apollo Global Management (NYSE:) to build an $11 billion chip plant in Ireland.
Separately, Tesla (NASDAQ:) shares gained 2% after Reuters reported that President Joe Biden is set to announce new tariffs in China as early as Tuesday, targeting sectors such as electric vehicles, medical supplies and solar equipment.
Ndivia inches higher, GameStop (NYSE:) jumps on meme stock fever
GameStop shares surged more than 74% in premarket trading as meme stock traders cheered the first “Growling Kitten” post in three years.
Nvidia (NASDAQ:) shares were unchanged even as Jeffries raised his price target on the chip maker’s share from $620 to $1,200 per share, calling Nvidia his “favorite” AI chip stock.
(Peter Nurse and Ambar Warrick contributed to this article.)