Stocks struggled for direction Monday. Market participants are cautious looking ahead to a busy batch of economic data. Most notable in this week's lineup is Friday's release of the Federal Reserve's preferred inflation measure, especially after the central bank last week forecast higher-for-longer interest rates.
The next inflation reading comes Friday morning with the August personal consumption and expenditures (PCE) index, which measures consumer spending. The latest readings on personal income and spending will also be released.
This confluence of economic reports, as well as the resumption of student loan repayments and a possible government shutdown could "create amplified market volatility," says Mark Hackett, chief investment officer of Nationwide. "Investors should brace for a week that could redefine market sentiment and strategy for the quarter ahead."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Today, though, the price action was relatively muted with the major indexes bouncing between positive and negative territory throughout Monday's session. At the close, the Nasdaq Composite (+0.5% at 13,271), the S&P 500 (+0.4% at 4,337) and the Dow Jones Industrial Average (+0.1% at 34,007) were all modestly higher.
Amazon's $4 billion AI investment
Amid a relatively bare economic calendar, investors took in single-stock news. Amazon.com (AMZN) sparked several headlines after it announced a collaboration with Anthropic, an artificial intelligence (AI) startup. As part of the deal, Amazon will invest $4 billion in Anthropic, taking a minority stake in the firm. Meanwhile, Anthropic will use Amazon Web Services (AWS) as its primary cloud provider.
AMZN shares climbed 1.7% Monday, while fellow mega-cap stocks Apple (AAPL, +0.7%) and Nvidia (NVDA, +1.5%) also gained ground.
Williams-Sonoma (WSM) was another big mover with shares rising 11.6% after regulatory filings revealed Green Equity Investors increased its passive stake in the home goods retailer to 5%. Today's gains just add to the consumer discretionary stock's impressive year-to-date return, with WSM up roughly 36% vs a 13% return for the broader market.
Energy stocks keep climbing
Energy stocks were also a pocket of strength Monday, with the sector outperforming (+1.3%) even as U.S. crude futures fell 0.7% to $89.42 per barrel. Oil and gas companies Coterra Energy (CTRA, +2.0%) and EOG Resources (EOG, +2.5%) were two notable gainers.
"Energy stocks are now reasserting their market leadership after gasoline prices in August rose 10.5% in the Consumer Price Index (CPI) and a whopping 20% in the Producer Price Index (PPI)," says Louis Navellier, chairman and founder of Navellier & Associates. In addition to an acute inventory decline, "there is a diesel shortage again, especially in Europe, so the U.S. is exporting more distillates, which is causing the trade deficit to decline and boost gross domestic product (GDP) growth."
Related content
-
Stock Market Today: Dow Sinks 715 Points as Inflation Unrest GrowsInflation worries are showing up in both hard and soft data.
-
What the Senate's Vote to Repeal CFPB Bank Overdraft Fees Cap Means For YouThe Senate voted to overturn the Consumer Financial Protection Bureau's cap on overdraft fees. Here's what you need to know.
-
Stock Market Today: Markets Celebrate Trump's Tariff DétenteConsumer discretionary stocks led 10 of the 11 S&P 500 sector groups well into the green.
-
Stock Market Today: Stocks Skid Into Another Risk-Off TurnThe promise of the AI revolution can't overcome flickering hopes for a "Fed put."
-
How Amazon Stock Became a Member of the 100,000% Return ClubAmazon's wide moat is one reason it has generated a 100,000%-plus return for investors over the long haul.
-
Stock Market Today: Stocks Pop on Time-Delayed TariffsAll three major U.S. equity indexes rallied to intraday highs following President Trump's latest trade moves.
-
Stock Market Today: Stocks Swing Lower as Inflation Fears RiseThe latest consumer sentiment data showed near-term inflation expectations rose to their highest level since November 2023.
-
Amazon Is the Worst Dow Stock After Earnings. Here's WhyAmazon stock is at the bottom of the Dow Friday as the e-commerce giant's soft outlook offsets a fourth-quarter beat. This is what you need to know.
-
Stock Market Today: Investors Respond to the Usual UncertaintyStocks surged late but the major indexes closed mixed as the search for market leadership continues.
-
The DeepSeek Crash: What It Means for AI InvestorsDeepSeek's R1 model represents both risk and opportunity. Here's what DeepSeek means for AI investors.
