FX.co ★ U.S. Stocks Move Modestly Higher Ahead Of Inflation Data, Powell Testimony

Stocks inched modestly higher on Monday, adding to last week’s robust gains, though the buying interest remained somewhat tepid.

As of now, the Nasdaq has risen by 59.63 points, or 0.3%, to 18,412.39. The Dow has climbed 58.06 points, or 0.2%, to 39,433.93, and the S&P 500 increased by 7.20 points, or 0.1%, to 5,574.39.

The mild upward movement on Wall Street can be attributed to optimism regarding the interest rate outlook ahead of significant economic events scheduled for this week.

Despite a slow start to the week on the economic calendar, reports on June’s consumer and producer prices are anticipated to gain traction in the coming days.

The Labor Department’s upcoming report on consumer prices is forecasted to reveal a deceleration in the annual price growth rate, potentially heightening expectations for a rate cut in September.

Additionally, traders are expected to closely monitor Federal Reserve Chair Jerome Powell’s congressional testimony for potential indicators concerning the future of interest rates.

Networking stocks are among the top performers today, propelling the NYSE Arca Networking Index up by 2.0%, reaching a near five-month intraday high.

Semiconductor and computer hardware stocks are also experiencing notable gains, contributing to the rise of the tech-heavy Nasdaq.

However, reflecting the broader market’s comparatively subdued performance, most other major sectors are displaying only modest movements.

In international markets, stock exchanges across the Asia-Pacific region largely declined on Monday. Japan’s Nikkei 225 Index decreased by 0.3%, China’s Shanghai Composite Index dropped by 0.9%, and Hong Kong’s Hang Seng Index fell by 1.6%.

Conversely, European markets displayed mixed results. The German DAX Index edged up by 0.1%, while the U.K.’s FTSE 100 Index dipped by 0.1%, and France’s CAC 40 Index declined by 0.4%.

In the bond market, treasuries are retreating after gaining ground over the past few sessions. Consequently, the yield on the benchmark ten-year note has climbed by 1.5 basis points to 4.287%.