- S&P 500 and Nasdaq edge lower
- Dow Jones closes above water
- US inflation due tomorrow
- Crypto stocks soar as bitcoin reaches new highs
4:15pm: Bitcoin hits all-time high as stocks fluctuate
US stocks were broadly lower at the close Monday, with Bitcoin rallying once more as investors awaited crucial inflation data that will influence expectations for interest rate adjustments.
The Dow Jones Industrial Average finished above water at 38,770 points for a 0.1% increase on the day. The S&P 500 dipped 0.1% to close at 5,118 and the Nasdaq, particularly impacted by a decline in tech stocks from the previous Friday, slid around 0.3% at 16,019.
The market's uncertainty stems from mixed signals in economic data, notably the February jobs report showing robust hiring alongside lower-than-expected unemployment figures, leaving investors uncertain about the possibility of imminent rate cuts.
As investors await the Consumer Price Index report due on Tuesday, Chair Jerome Powell's remarks regarding the need for confidence in inflation's decline before adjusting borrowing costs have added to the market's caution, as a surprise uptick in inflation could dampen hopes for a Fed policy shift and weigh on stocks.
Meanwhile, bitcoin surged to a new record high, surpassing $72,000 for the first time, buoying crypto-related stocks such as Coinbase, Marathon Digital Holdings, and MicroStrategy.
1:46pm: Wall Street muted as market braces for February inflation figures
US stocks are keeping slightly lower on Monday with the S&P 500 down around 8 points, while the Nasdaq is trailing by 41 points.
The Dow Jones is faring slightly better, up around 15 points.
Wall Street's muted performance comes just a day before investors brace for February's inflation figures, with the consumer price index expected to hold at 3.1%.
Core inflation, which excludes volatile food and energy prices, is expected to slow from 3.9% in January to 3.7% last month.
“At the end of the day, markets are probably still too optimistic about the Fed’s ability to cut rates significantly in 2024,” said Lara Rhame, FS Investments' chief U.S. economist.
“I think the February inflation data will be another reminder that the Fed needs to tread cautiously.”
11:32am: Wall Street slips lower despite bitcoin rally
Wall Street is trading lower on Monday as the rally, which saw leading indexes reach record highs, continues to cool off.
The Dow Jones is down around 123 points at 38,602, while the S&P 500 and the Nasdaq are down 18 points and 54 points respectively.
AI-linked stocks experienced slight slips as investors question whether there is still room to rise, with Super Micro Computer dropping by around 7% and Nvidia edging 0.5% lower.
Meta and Eli Lily dropped around 4%.
On the other end, crypto-linked stocks like Coinbase (4.5%) and Microstrategy (+12%) continue to benefit from Bitcoin soaring to new all-time highs.
The world’s largest cryptocurrency (BTC) rocketed above $70,000 on Monday, for the first time in its 15-year history.
8:28am: Wall Street to open lower
US stocks are expected to extend their losses when trading starts on Monday, having finished the past week on a sharp down note.
Futures markets are pricing a 0.55% decline for the Nasdaq 100, which led the losses on Friday.
The Dow Jones and S&P 500 are both seen falling around 0.4%.
Nvidia, which fell 5.5% on Friday, along with Microsoft and Amazon are among big tech stocks also in the red in pre-market trading.
"There was no single catalyst for the decline in Nvidia, which dragged the rest of the Magnificent 7 lower, and weighed on overall market sentiment," said market analyst Kathleen Brooks at XTB.
"However, there were concerns that the rapid rise in prices was looking like bubble territory. Nvidia is up by more than 77% so far this year, and the S&P 500 has made 16 days of record highs so far this year, which is about a third of all trading days. When this happens, a pullback is expected."
While the market mood is pensive, alternative assets are the centre of the action, with gold and bitcoin both making fresh record highs on Monday.
The gold spot price reached a high of $2,189 on Monday morning, before pulling back ahead of lunchtime in Europe, while Bitcoin saw Friday's $70k high and took a step up to $71k.
In other stock news, social media platform Reddit Inc has priced its upcoming initial public offering, with a $5.4 billion valuation implied.
The pricing has been set at between $31 and $34 per share, with the company hoping to raise $748 million at the top end of this pricing range.