Traders to Watch CPI for Clues on The Fed’s Rate Path – US Market Wrap

Wall Street traders found little reason to keep pushing the stock market higher at the start of a week that will include the final inflation data before the next Federal Reserve decision.

Equities fell on Monday, as investors sought more information on whether the recent increase in consumer prices was a blip or an indication that the disinflationary trend has hit a stumbling block. After closing at record highs 16 times this year, the S&P 500 is showing signs of overheating, prompting forecasts of near-term consolidation.

The S&P 500 index closed around 5,118. Boeing’s 2024 slump has widened to more than 25% due to a US criminal investigation. Meta Platforms  dropped nearly 4.5%. Tesla has rebounded. Treasury yields fell, as traders braced for another round of high-grade corporate debt sales. Bitcoin reached $72,000.

According to a Fed Bank of New York survey, US consumer expectations for inflation over the next three years rose in February, and increased even more sharply for the five-year horizon. These figures came ahead of data that showed inflation likely fell gradually last month, demonstrating why US officials are hesitant to cut interest rates.