Traders and investors have watched Wall Street’s major market averages trade mixed on Monday, as participants look ahead to important inflation reports and earnings scheduled for later in the week.
The tech focused Nasdaq Composite (COMP:IND) has climbed 0.1%, the benchmark S&P 500 (SP500) trades near even, and the blue-chip Dow (DJI) was -0.1%.
From a sector point of view, five of the 11 S&P segments are higher, with Utilities and Info Tech at the top of the leaderboard. At the other end of the spectrum, the worst performing sector on the session is Communication Services.
The Treasury market has noticed an uptick in yields. The shorter end U.S. 2 Year Treasury yield (US2Y) moved up by 2 basis points to 4.62%. At the same time, the longer end U.S. 10 Year Treasury yield (US10Y) moved up by 1 basis point to 4.28%.
See how other yields trade across the entire yield curve here.
Investors brace for what should be an action packed week, with the June consumer price index and producer price index expected to come on Thursday and Friday, respectively. Furthermore, Fed chair Jerome Powell will also speak to the Senate and House on Tuesday and Wednesday.
Sameer Samana, senior global market strategist at Wells Fargo, wrote that due to the “gauntlet of events that could serve as inflection points in the coming months” such as Fed meetings, the U.S. presidential election and other international elections, coupled with geopolitical developments and the economic data, “there is a good probability that a trimming of U.S. large cap equities and portfolio rebalancing might be in order.”
Moreover, data showed that The SPDR S&P 500 Trust (SPY), the world’s largest exchange-traded fund, witnessed a net outflow of $2.47B during the holiday-shortened week, after recording an outflow of $9.6B in June.