Market Caution as Investors Await Fed Reports

Wall Street's indexes were mostly flat on Monday as investors paused after last week's rally, awaiting multiple job reports and comments from Federal Reserve policymakers. The Dow dropped, the S&P 500 slightly decreased, and the Nasdaq edged up. Key economic data and Fed policy directions were being closely monitored.

Wall Street's main indexes were largely flat on Monday as investors exercised caution following last week's rally, awaiting forthcoming job reports and insights from Federal Reserve policymakers, including Chair Jerome Powell.

As of 11:48 a.m. ET, the Dow Jones Industrial Average fell 146.01 points (0.35%) to 42,166.99, the S&P 500 lost 2.59 points (0.05%) to 5,735.58, while the Nasdaq Composite gained 8.62 points (0.05%) to 18,128.21. The materials sector saw the greatest decline, down 1% after a strong previous week.

The Dow and S&P 500 were nearing all-time highs, maintaining momentum for a fifth consecutive month, diverging from the usual weak performance in September. Federal Reserve's easing of monetary policy has contributed to the positive quarterly rise in major indexes.

Economic data indicating moderated price pressures and economic resilience have allowed the Fed to focus on labor market adjustments rather than recession avoidance, reducing borrowing costs. Analysts highlight the importance of interest rate decisions in the final phase of inflation management, anticipating Chair Powell's remarks at a 1:55 p.m. ET conference.

This week's focus includes August's job openings report and September's pivotal payroll figures, with traders predicting a 59% likelihood of a 25 basis point rate cut, down from earlier predictions for a larger reduction. Comments from Robert Conzo, CEO of Wealth Alliance, emphasized the preference for gradual 25 basis point cuts.

Notable market moves included CVS Health's 1.9% rise following a hedge fund meeting, and declines in Ford and General Motors stocks after Stellantis NV reduced its annual forecasts. Chinese stimulus moves led to minor gains for Alibaba and PDD, while Freeport-MacMoRan fell due to a rating downgrade.

Market participants also monitored a port strike on the East Coast and Gulf of Mexico, potentially impacting supply chains. NYSE and Nasdaq saw more declining than advancing issues, with the S&P 500 recording new yearly highs and lows.

(With inputs from agencies.)