STORY: U.S. stocks ended lower on Monday ahead of key inflation data due later in the week.
The Dow Jones Industrial Average fell four-tenths of a percent, and the S&P 500 and Nasdaq both fell about three-tenths of a percent.
But the trade was the first after all three indexes posted their biggest weekly gains this year, and Lisa Erickson, head of U.S. Bank Wealth Management's public markets group, said Monday's losses were I thought this was due to profit taking.
“Today we really have a bit of a reset market. If you think about 2024 as a whole, it's driven by both signs that inflation is slowly moving towards its target, and the market is quite Goldilocks-like. Similarly, the Fed is on pause and may potentially pivot. Still, the macro fundamentals are generally better than expected. So, in fact, Things are going very well in terms of stocks. Prices.”
The Federal Reserve last week maintained its guidance for three rate cuts this year. According to CME's FedWatch tool, the market is currently pricing in a more than 70% chance of a June rate cut.
In corporate news, Boeing shares rose more than 1% after the company announced a wide-ranging management shakeup, including CEO Dave Calhoun's departure this year, to resolve safety issues with its planes.
Walt Disney shares rose 3% after Barclays upgraded the stock from “equal weight” to “overweight.”
Micron Technology, whose memory chips are used in artificial intelligence hardware, soared more than 6% to close at a record high.
The February release of the Consumer Expenditure Price Index, the Fed's preferred inflation measure, is scheduled for release on Friday, when markets are closed for Good Friday.