In anticipation of the release of important inflation data, traders concluded Monday’s session with the S&P 500 close to the flat line.
The broad-market index closed at 4,411.55, down 0.08% on the day. At 13,767.74, the Nasdaq Composite concluded with a 0.22% decrease. The Dow Jones Industrial Average gained 54.77 points, or 0.16%, to close at 34,337.87.
As the next market mover, investors were anticipating Tuesday’s consumer price index report for October. According to economists surveyed by Dow Jones, headline inflation is predicted to have increased 3.3% from a year ago. It is also anticipated that the metric has increased by 0.1% from the previous month.
In highlighting the reasons for the downgrade, Moody’s on Friday cited the “extremely significant” fiscal deficits in the United States and the partisan impasse in Washington. America’s AAA credit rating—the highest possible—was upheld by the ratings organisation. The U.S. long-term foreign currency issuer default rating was downgraded by Fitch to AA+ from AAA three months prior, citing political impasse over budgetary matters, rising debt levels, and anticipated fiscal deterioration.
Despite the bleak prognosis, Treasury rates were unchanged on Monday. At last, the yield on the 10-year Treasury note increased by almost 1 basis point to 4.638%.
Investors’ response to Moody’s downgrading is evident, but there is also caution on certain significant events that are scheduled for this week. According to AXS Investments CEO Greg Bassuk, “we believe that everyone is watching this week’s inflation figures and the Fed’s subsequent policy.”
Bassuk anticipates that the market will remain volatile through the end of the year in light of this, particularly in light of the ongoing battles abroad. This has caused the Grinch to “fuel the Christmas rally this year,” along with conflicting economic statistics.
Source (CNBC)
