(CTN News) – Stocks increased on Monday in anticipation of a week laden with data reports that may influence the likelihood of the Federal Reserve reducing interest rates at its forthcoming meeting.

The S&P 500 increased by 0.2%, remaining marginally behind last week’s record high. At 1:41 p.m. Eastern Time, the Dow Jones Industrial Average declined by 9 points, representing a decrease of less than 0.1%, and the Nasdaq Composite increased by 0.5%.

AppLovin and Robinhood Markets elevated the market upon the announcement of their inclusion in the S&P 500 index later this month, alongside Emcor Group.

Numerous investment funds either directly mirror the index or assess their performance relative to it; hence, a stock’s inclusion in the roster of the 500 largest companies may promptly attract investor capital.

AppLovin increased by 10.2%, Robinhood rose by 13.4%, and Emcor declined by 0.1%. Three companies that have diminished significantly will be substituted and assigned to S&P’s SmallCap 600 index.

The stock prices of MarketAxess Holdings, Caesars Entertainment, and Enphase Energy varied between a 3.5% decrease and a 0.3% increase.

EchoStar’s stock surged 15.1% on the announcement of a $17 billion agreement to sell spectrum licenses to Elon Musk’s SpaceX, comprising cash and shares. SpaceX has consented to assume around $2 billion in interest payments on EchoStar’s debt until November 2027.

The collaboration will assist SpaceX’s Starlink division in developing direct-to-cell service, adversely affecting the stock valuations of rival telecommunications firms.

Verizon fell 1.8% and AT&T 1.7%.

PNC Banking Services Group declined by 0.6% following the announcement of a $4.1 billion acquisition of FirstBank, a banking institution based in Lakewood, Colorado.

Market activity was somewhat subdued in expectation of forthcoming economic and inflation reports later this week. They could alter traders’ anticipations, as they now foresee the Fed reducing its primary interest rate for the first time this year at its meeting two Wednesdays hence.

Investors frequently endorse such reductions since they can enhance economic growth and elevate investment values. Their disadvantage is that they may exacerbate inflation.

This year, the Federal Reserve has articulated heightened apprehension about the possible intensification of inflation due to Trump’s tariffs, rather than focusing on the labor market. Nevertheless, a multitude of new data may be altering perceptions by suggesting a deceleration in the US labor market.

On Tuesday, the US government will Stock publish early revisions to employment growth figures for March, suggesting that hiring was weaker than initially anticipated.

Inflation figures will be provided on Wednesday and Thursday, indicating the extent of price increases in both the wholesale and consumer sectors for the preceding month. Unexpectedly large rises may impede the Federal Reserve’s actions.

Stock market or inflation, as they possess just one instrument to address both challenges. Modifying interest rates to enhance one sector typically adversely impacts another in the short term.

American companies have been exploring diverse strategies to safeguard their revenues amid tariffs that increase the expense of imported products.

Strategists at Morgan Stanley, led by Michelle Weaver, indicate that numerous industrial companies are considering their capacity to increase prices. Companies marketing non-essential goods directly to customers are increasingly addressing accumulated inventories, which may postpone the effects on US households.

Treasury yields in the bond market persisted in their decline as anticipations for the Federal Reserve to reduce interest rates remained elevated. The 10-year Treasury yield decreased to 4.07%, down from 4.10% late Friday and 4.28% the prior Tuesday.

Foreign stock indices rose across Europe and Asia.

The Nikkei 225 in Japan rose by 1.5% after Prime Minister Shigeru Ishiba announced his resignation.

Analysts indicated that Ishiba’s announcement had been expected for some time and represented a progressive advancement; nonetheless, uncertainty persists since the ruling Liberal Democratic Party must conduct an election to appoint a new leader.

Until parliament selects and ratifies a successor, Ishiba will continue as prime minister.

On Monday, Japan’s Cabinet Office reported that the economy expanded more rapidly than anticipated in the fiscal first quarter, with a seasonally adjusted annualized growth rate of 2.2%, surpassing the prior estimate of 1.0%, attributed to robust consumer expenditure and inventory levels.

SOURCE: AP