The S&P 500 traded lower on Monday amid a lower January rally as investors looked ahead to the busiest week of the earnings season and a Federal Reserve interest rate hike.
The broader market index fell about 0.9%, while the Nasdaq composite fell nearly 1.7%. Meanwhile, the Dow Jones industrial average fell 75 points, or 0.2%.
Ford Shares fell more than 1% After Automakers said they would cut prices Following a similar announcement by Tesla, it ramped up production on its electric Mustang Mach-E crossover. Caravan There were stocks Stopped briefly after a 27% rise At share price.
Still, the S&P 500 gained nearly 8% for its best January since 2019. As of Monday morning, the broader market index was up 5.2% for 2023, following a 19% loss last year.
However, the 2023 rally has several tests this week. About 20% of the S&P 500 will report earnings this week McDonald’s And General Motors Following the tech giants on Tuesday Apple, Meta platforms, Amazon And letters Later in the week.
The Federal Open Market Committee meets on Tuesday and Wednesday, when the central bank is expected to raise rates by a quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will raise rates in the fight against inflation. Traders have boosted stocks this year as softer inflation reports suggest the central bank may soon pause its hiking campaign.
“Despite several positive developments, we think the good news is now too expensive, and the reality will return at the end of the month and the Fed’s determination to rein in inflation,” wrote Mike Wilson, chief U.S. equity strategist at Morgan Stanley. Note Monday.