US market jitters continue as investors await inflation data

US stocks traded erratically on Monday, ultimately closing near flat as investors remained on edge ahead of crucial inflation figures.

The S&P 500 finished virtually unchanged, up just 0.23 points to 5,344.39, after fluctuating between small gains and losses throughout the day. The Dow Jones Industrial Average retreated 140 points, or 0.36 per cent, to 39,357.01.

Turning to US sectors, all closed lower overnight except for Technology, Energy and Utilities. Real Estate was the worst performer, closing lower by 0.64 per cent.

In company news, JetBlue shares plummeted 21 per cent after announcing plans to raise $400 million through convertible notes. KeyCorp surged 9 per cent as The Bank of Nova Scotia invests $2.8 billion for a minority stake, making it the S&P 500’s top performer. AI darling Nvidia grew 4 per cent.

Market sentiment remains fragile following a period of heightened volatility. Investors are keenly focused on Wednesday’s consumer price index (CPI) report for July, which will offer vital clues about the health of the US economy. A weak non-farm payrolls report last month exacerbated market concerns, and another disappointing economic indicator could trigger further selling pressure.

The major indices ended the week with slight losses but recouped most of the declines suffered earlier in the period.

In addition to Wednesday’s CPI report, Wall Street is also monitoring Tuesday’s producer price index (PPI) data for July and Thursday’s retail sales figures.

In commodity related news, oil prices surged on Monday, driven by escalating tensions between Iran and Israel following the assassination of a Hamas leader. The market is anticipating potential retaliatory actions from Iran, which could disrupt oil supplies from the Middle East. Copper prices rose as declining LME inventories suggest China’s copper demand may be stabilising after a recent slump. However, analysts warn that a global surplus could limit copper’s upside potential soon.

Futures

The SPI futures are pointing to a flat start.

Currency

One Australian dollar at 7.30am was buying 65.86 US cents.

Commodities

Gold has gained 1.24 per cent. Silver has added 1.52 per cent. Copper has risen 1.89 per cent. Oil has jumped 4.19 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE gained 0.52 per cent, Frankfurt added 0.02 per cent, and Paris closed 0.26 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei was closed, Hong Kong’s Hang Seng added 0.13 per cent, while China’s Shanghai Composite closed 0.14 per cent lower.

Yesterday, the Australian share market closed 0.46 per cent higher at 7813.67.

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Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
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