U.S. Stocks Await Key Economic Data

The Dow Jones Industrial Average (DJIA) traded near 45,500 on Monday, as investors paused ahead of a critical week for economic data. While other major indexes, particularly those with a higher concentration of technology stocks, posted gains and hit new records, the Dow remained relatively flat. This cautious sentiment reflects a market poised for action but waiting for clear signals from upcoming reports.

Investors are largely betting on a Federal Reserve interest rate cut scheduled for September 17. These expectations were solidified by last week’s weaker-than-expected Nonfarm Payrolls (NFP) report, which suggested a cooling labor market. However, a major hurdle remains in the form of the Consumer Price Index (CPI) inflation report, set to be released this Thursday.

Inflation has consistently stayed above the Fed’s 2% target, with little progress made in taming price pressures throughout the year. The upcoming CPI data will be a key determinant of whether the central bank proceeds with its anticipated rate cut, making it a pivotal event for markets this week.