Wall Street Awaits Key Inflation Data Amid Mixed Market Performance

Wall Street ended mixed on Monday as investors awaited inflation data, Federal Reserve commentary, and the start of the quarterly earnings season. Nvidia and other chipmakers rose, but the Dow Jones fell slightly. Investors are concerned about interest rates and potential recession, closely monitoring upcoming data and testimonies.

Wall Street closed with mixed results on Monday as investors anticipated fresh inflation data, Federal Reserve Chair Jerome Powell's commentary, and the beginning of the quarterly earnings season.

Nvidia, Intel, Advanced Micro Devices, and other chipmakers saw gains, boosting the Philadelphia semiconductor index by around 2%. Traders are set to analyze consumer price data on Thursday and producer price data on Friday to assess the Federal Reserve's progress in combating inflation.

Investors are worried that delaying interest rate cuts could harm the labor market and push the economy into recession. They will closely follow Powell's semiannual testimony before U.S. Senate and House committees on Tuesday and Wednesday. Ross Mayfield, an investment strategy analyst at Baird, mentioned that investors desire to hear a dovish tone and a balanced assessment of risks, especially concerning the labor market.

Following Friday's nonfarm payrolls report, which indicated slowed U.S. job growth in June, expectations for interest rate cuts as early as September have increased. Traders now see a 75% chance of a rate cut of at least 25 basis points by September, up from 60% last week, according to CME's FedWatch.

On Friday, Citigroup, JPMorgan Chase, and Wells Fargo will kick off Wall Street's second-quarter earnings season. Analysts expect the S&P 500 companies to average a 10.1% increase in earnings per share for the second quarter, up from an 8.2% increase in the first quarter, according to LSEG I/B/E/S. Preliminary data shows the S&P 500 gained 5.66 points, or 0.10%, to end at 5,572.84 points, while the Nasdaq Composite gained 49.58 points, or 0.27%, to 18,403.74 points. The Dow Jones Industrial Average fell by 31.14 points, or 0.08%, to 39,344.73 points.

Paramount Global shares fell after agreeing on Sunday to merge with Skydance Media, scripting a new chapter for one of Hollywood's oldest studios. Boeing's shares gained after it agreed to plead guilty to a criminal fraud conspiracy charge and pay a $243.6 million fine to settle a U.S. Justice Department investigation into two fatal 737 MAX crashes.

(With inputs from agencies.)