Stock Indexes Changed Little As Market Slows ahead of Inflation Data

The Dow Jones has finished its winning streak and the stock market is now mostly flat while waiting for new economic data.

Written by: Timothy St. John • Tuesday, May 14, 2024 • 2 min read

Last updated: Tuesday, May 14, 2024

The lengthy Dow Jones streak is now over, with the index posting its first day of losses in nine days.

USD index — The flat stock market could move quickly when economic data releases later this week.

The other major stock indices showed only a little change from the previous day, with the Nasdaq Composite up 0.29% before the market opens for Tuesday. The S&P 500 was down 0.02% for a mostly flat market.

The big news this week and what is sure to affect the stock market is the upcoming US CPI report as well as the US PPI reports. These will feed into the Federal Reserve’s decision for interest rate cuts, helping to determine when and if those cuts will happen this year. Strong data from these economic indicators will create a hawkish outlook, while weak data will make for a dovish forecast.

The expectation for this week is that prices will go up and that the reports will reflect that. This is why we are seeing timid trading so far, with investors wary of committing too much to a market that may be gearing up for a downturn. The inflation trend for much of the year has been a steady increase with no end in sight, and that has left the Federal Reserve no choice but to hold off on interest rate cuts. The Fed fears that if they cut rates while inflation is increasing, the move will simply force inflation even higher.

The Big Movers on the Stock Market for This Week

We have seen Walmart (WMT) stock briefly shoot up this week in response to strong earnings. The company’s quarterly report was mixed, though, as it showed major spending commitments that could cut into profits for the upcoming quarter.

GameStop (GME) stock was one of the most unexpected major movers this week, with a surge of 74% upward today. The stock price is all over the place, and its volatility is being powered by strong investments that are based on social media posts from industry movers rather than from any change in the company’s earnings or financial outlook.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.