Investing.com– U.S. stocks edged higher Monday, trading in a relatively calm manner after last week’s wild swings, with the focus turning to key inflation data this week.
At 09:32 ET (13:32 GMT), the rose 60 points, or 0.2%, the climbed 11 points, or 0.2% and the gained 53 points, or 0.3%.
CPI data awaited for more cues
The focus this week is squarely on inflation data, due on Wednesday, for more cues on the economy and cooling inflation.
The reading is expected to have cooled slightly in July from the prior month – a trend that is likely to ramp up optimism over lower interest rates.
The Federal Reserve is widely expected to begin cutting rates in September, amid growing signs of a cooling U.S. economy, but investors are split over whether the U.S. central bank will authorise a 25 basis point or 50 basis point cut.
The Fed recently signaled that any more encouraging economic data will set the stage for a September rate cut, and that it did not need to see inflation reaching its 2% annual target to begin trimming rates.
Earnings season winds down
A rout in technology stocks and fears of a U.S. recession saw U.S. stock indexes initially log steep losses last week, with the Nasdaq entering correction territory from recent peaks.
But bargain buying into heavyweight tech stocks, coupled with the notion that fears of a U.S. recession may be overblown, helped Wall Street recoup most losses.
Beyond Wednesday’s inflation data, some earnings are also on tap this week, although the second quarter earnings season has now mostly wound down.
Home Depot (NYSE:) and Cisco Systems (NASDAQ:) are set to report in the coming days.
Crude climbs once more
Crude prices rose Monday, climbing for the fifth successive session as concerns over the U.S. economy waned while geopolitical tensions in the Middle East remained a support.
By 09:32 ET, the U.S. crude futures (WTI) climbed 1.4% to $77.94 a barrel, while the Brent contract rose 0.9% to $80.58 a barrel.
Both crude benchmarks gained more than 3% last week, the first positive week in five.
Iran and Hezbollah have vowed to retaliate for the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.
Axio reported on Sunday that Israeli intelligence believes Iran will attack Israel directly and within days.
These concerns over a potential disruption to supply has overshadowed the Organization of Petroleum Exporting Countries cutting its demand growth forecast for 2024, in its .
(Ambar Warrick contributed to this article.)
