The S&P 500 added to slight gains before the close, with caution prevailing for much of the session ahead of Wednesday's consumer prices report and the start of second-quarter earnings later this week.
Investors are anxious to see if price pressures are continuing to moderate. That could shed light on the interest rate outlook, with many traders expecting the Fed to raise interest rates by 25 basis points this month.additional interest rate hikes are needed to bring down inflation that is still too high, but the end to the U.S. central bank's current monetary policy tightening cycle is getting close.
"The market is obviously poised for the opening of earnings season," but investors are also hyper-focused on consumer prices and a heavy roster of Fed speakers this week, said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.S&P 500 company earnings are due to unofficially kick off this week with reports from some big U.S. banks. Analysts expect earnings to have fallen 6.
A trader works on the floor of the New York Stock Exchange in New York City, U.S., July 7, 2023. REUTERS/Brendan McDermid