U.S. stocks edged higher on Monday after the S&P 500 index hit a historic close as investors braced for the year's first major inflation update and the next earnings report.
The S&P 500 (^GSPC) rose 0.3% after a record week in which the benchmark ended above 5,000 for the first time. The Dow Jones Industrial Average (^DJI) rose about 0.5%, and the tech-heavy Nasdaq (^IXIC) rose about 0.3%.
Shares of chipmaker Nvidia (NVDA) rose 2% on Monday, setting a new record. Britain's Semiconductor Design Arm (ARM) also set a new record, extending its gains from last week.
Stock prices have risen as the market has seen a series of better-than-expected earnings, with tech giants leading the way. John Deere (DE), Coca-Cola (KO), Airbnb (ABNB), and Kraft Heinz (KHC) in the next batch of quarterly reports, which will serve as document highlights in the coming days. It is attracting attention.
But the week will bring new challenges to the bull market, with January's consumer price index expected to be released on Tuesday. The CPI report gives investors the first insight into how well inflation is on track in 2024, along with an update on consumer spending and an update on the timing and pace of the Federal Reserve's interest rate cuts this year. It will set expectations.
read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards
Traders are scaling back bets on a March interest rate cut amid a series of warnings from cautious Fed officials. There will be more Fedspeak on Monday, with regional presidents Michelle Bowman, Tom Barkin and Neel Kashkari set to appear.