US markets end mostly in red on Monday

09 Apr 2024 Evaluate

The US markets ended mostly in red on Monday as traders seemed reluctant to make significant moves ahead of the release of closely watched inflation data later in the week. The Labor Department is scheduled to release its reports on consumer and producer inflation in the month of March on Wednesday and Thursday, respectively. Street currently expects consumer prices to rise by 0.3 percent in March following a 0.4 percent increase in February. Core consumer prices, which exclude food and energy prices, are also expected to climb by 0.3 percent in March after rising by 0.4 percent in February. The annual rate of consumer price growth is expected to accelerate to 3.4 percent in March from 3.2 percent in February, while the annual rate of core consumer price growth is expected to slow to 3.7 percent for 3.8 percent.

Producer prices are expected to rise by 0.3 percent in March after climbing by 0.6 percent in February, while the annual rate of producer growth is expected to jump to 2.3 percent from 1.6 percent. The inflation data could have a significant impact on the outlook for interest rates, as Federal Reserve officials have repeatedly said they need greater confidence inflation is slowing before cutting rates. On the sectoral front, most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets. Airline stocks showed a strong move to the upside, however, with the NYSE Arca Airline Index jumping by 1.8 percent.

Dow Jones Industrial Average fell 11.24 points or 0.03 percent to 38,892.8 and S&P 500 was down by 1.95 points or 0.04 percent to 5,202.39, while Nasdaq added 5.44 points or 0.03 percent to 16,253.96.