Traders Prepare for Volatility, With CPI & FOMC Due on Wednesday – US Market Wrap

Stocks edged higher in a cautious session as investors prepared for the Federal Reserve’s decision and key inflation data. Apple fell even after introducing new artificial intelligence features.

As traders braced for volatility ahead of US macroeconomic catalysts, uncertainties across the Atlantic weighed on equities. European shares fell after French President  Macron called a legislative vote following a crushing defeat in Parliament elections. France’s 10-year bond yields reached an all-time high this year, while the country’s top banks fell. The euro led the decline in developed-world currencies.

The Federal Reserve is widely expected to keep interest rates stable, but officials’ rate projections are less certain. A 41% plurality of economists expect them to signal two cuts in the “dot plot,” while an equal number expect only one or no cuts.

The S&P 500 rose 0.3% to set a new record. Nvidia began trading following a 10-for-1 stock split. GameStop plummeted.

The Treasury market also saw small movements, with a weak $58 billion three-year auction dampening sentiment ahead of Tuesday’s $39 billion 10-year sale.