US markets drift, as investors eye Fed and earnings
US stocks ended mixed on Monday as investors awaited fresh inflation data, commentary from Federal Reserve Chair Jerome Powell and the start of quarterly earnings season. The S&P 500 gained 5.66 points, or 0.1 percent, to 5,572.85, the Nasdaq Composite gained 50.98 points, or 0.3 percent, to 18,403.74. The Dow Jones Industrial Average fell 31.08 points, or 0.1 percent, to 39,344.79. Nvidia, Intel, Advanced Micro Devices and other chipmakers rose, lifting the Philadelphia semiconductor index about 2 percent. Traders will scrutinize consumer price data due on Thursday and producer price data expected on Friday to gauge the Fed's progress in fighting inflation. Investors worry that waiting too long to cut interest rates could damage the labor market and push the economy into a recession. They will closely monitor Powell's semiannual testimony before US Senate and House committees on Tuesday and Wednesday. "What investors want to hear is a dovish tone and an acknowledgement that the two-sided risks are more evenly balanced today, in particular, with respect to the labour market," said Ross Mayfield, an investment strategy analyst at Baird. Expectations for interest rate cuts as early as September grew after Friday's nonfarm payrolls report showed US job growth slowed in June - the latest data to point to weakness in labour market conditions. Traders now see a greater than 75 percent chance of a rate cut of at least 25 basis points by September, up from last week's 60 percent, according to CME's FedWatch. Citigroup, JPMorgan Chase and Wells Fargo are slated to kick off Wall Street's second-quarter earnings season on Friday. Paramount Global fell after it agreed on Sunday to merge with Skydance Media, scripting a new chapter for one of Hollywood's oldest studios. Planemaker Boeing gained after agreeing to plead guilty to a criminal fraud conspiracy charge and pay a fine of US$243.6 million to resolve a US Justice Department investigation into two fatal 737 MAX crashes. (Reuters)