US Stocks Slip as Traders Await Inflation Report Amid Global Uncertainty

U.S. stocks dipped slightly on Monday morning as traders focused on a key inflation report expected later this week. Treasury yields stayed steady, and the dollar fell slightly, showing a careful approach from investors.

Ad

Wall Street Takes a Breather After Record Gains

Last Friday, the S&P 500 and Nasdaq hit new record highs, thanks to a moderate jobs report for November. While the report supported hopes for a December interest rate cut by the Federal Reserve, it also showed the job market remains steady. Strong Thanksgiving weekend shopping and travel added to the optimism, raising hopes that the economy can avoid a downturn.

The November inflation report, due Wednesday, is expected to show only small changes in prices. If that happens, it could confirm that the Fed’s current policies are keeping the economy stable and markets strong.

Advertisement

Middle East Tensions Add Uncertainty

Geopolitical risks are also on investors’ minds. Over the weekend, Syrian President Bashar Al-Assad’s regime collapsed, creating more instability in the already troubled Middle East. Experts warn that this could shake global markets in the coming days.

“Assad’s fall is a major shift that might weaken Russia and Iran’s hold in the region while changing the power dynamics,” said Lindsay James, an investment strategist at Quilter Investors. “Oil prices are steady at $71 a barrel, but OPEC+ production cuts and Middle East unrest could lead to sudden changes.”

Oil Prices See Small Increases

Oil prices moved up slightly, with Brent crude gaining 80 cents to $71.92 per barrel and U.S. West Texas Intermediate (WTI) rising 86 cents to $68.06 per barrel. Although demand has been weak globally, unrest in the Middle East might push prices higher.

Cautious Start for U.S. Markets

Stock futures suggested a slow start for the week. S&P 500 futures pointed to a 5-point drop at the open, while the Dow Jones Industrial Average was expected to fall by 20 points. The Nasdaq Composite, up 32.3% for the year, was set for a 30-point dip.

Treasury yields showed little movement, with 10-year notes at 4.164% and 2-year notes at 4.106%. Meanwhile, the U.S. dollar index, which tracks the currency against six others, slipped 0.18% to 105.865.

Global Markets Look to Stimulus Hopes

Overseas markets showed mixed results. Chinese stocks rallied after reports of potential new stimulus measures, including easier monetary policy. Hong Kong’s Hang Seng Index jumped nearly 2.8%, driven by optimism ahead of an economic meeting in Beijing. In Europe, the Stoxx 600 hit a six-week high, up 0.1%, while London’s FTSE 100 rose 0.24%.

Investors are keeping a close watch on inflation data and global events. Despite some uncertainties, there is cautious optimism about the economic outlook as the year comes to a close.

Also Read: US Stock Market Rises After November Jobs Report Dow S&P 500 Nasdaq Update