Investing.com-- The S&P 500 closed lower Monday as big tech took breather ahead of key market-moving events this week including an update on inflation and remarks from Federal Reserve officials.
By 16:00 ET (20:00 GMT), the Dow Jones Industrial Average was down 162 points, or 0.4%, S&P 500 fell 0.3% and NASDAQ Composite was 0.3% lower.
Fed speak, inflation data in focus
Atlanta Federal Reserve Bank President Raphael Bostic reiterated Monday that he sees the need for just one rate this week, adding that the strong economy allows the central bank to continues with its cautious approach.
Fed governor Lisa Cook also reiterated the need for the bank or proceed carefully on rate cuts. The somewhat less dovish remarks were in contrast to Fed chairman Powell's speech last week following the central bank's signal that three rate cuts remain on the table for 2024.
Further Fed speak will follow later this week, with remarks from Fed governor Christopher Waller and chairman Jerome Powell likely to garner the bulk of investor attention.
Personal consumption expenditures data, which is the Fed’s preferred inflation gauge, is due this Friday, when the market is on holiday for Good Friday.
Traders now see a 75% chance of the Fed bringing in the first cut in June, according to the CME FedWatch tool, up from around 55% at the start of last week.
Boeing bounces as CEO set to step down; United Airlines in regulatory quagmire
Boeing (NYSE:BA) stock rose 1.2% after the aircraft manufacturer announced significant management changes on Monday, with Dave Calhoun to step down as CEO at the end of 2024.
United Airlines (NASDAQ:UAL) stock fell 4.5% after the U.S. Federal Aviation Administration's move to increase its oversight of the carrier after a series of recent safety incidents.
Super Micro Computer powers chip stocks slightly higher, but China regulatory action weighs
Super Micro Computer Inc (NASDAQ:SMCI) jumped more than 7% after JPMorgan (NYSE:JPM) started coverage on the company at overweight with a $1,150 amid optimism about an acceleration in server demand to support the AI revolution.
Still, sentiment on chips were soured after China blocked the use of Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) chips in government computers.
In other tech news, Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META) and Alphabet (NASDAQ:GOOGL) stocks were in the red after EU antitrust regulators launched investigations into the tech giants for potential breaches of the Digital Markets Act, potentially leading to hefty fines for the companies.
Disney gets Barclays (LON:BARC) boost; DWAC jumps ahead of nasdaq debut for Trump's social media app; Lucid jumps on liquidity boost
Walt Disney Company (NYSE:DIS) rose more than 2% after Barclays upgraded it to overweight amid growing confidence that earnings estimate for the entertainment giant has bottomed.
Activist investor Nelson Peltz, meanwhile, said he supports Disney CEO Bob Igor, though flagged the board members' "questionable strategic and capital allocation decisions," amid a proxy battle that is headed into its final week, with tally votes due Apr. 3.
Digital World Acquisition Corp (NASDAQ:DWAC) jumped more than 35% after the blank-check company officially completed its merger with former President Donald Trump’s Trump Media & Technology Group Corp., the parent company of his Truth Social.
Lucid Group Inc (NASDAQ:LCID) gained more than 5% after the struggling electric vehicle maker secured a much needed financial lifeline, securing $1 billion from an affiliate of Saudi Arabia's Public Investment Fund.
Energy stocks ride rising oil prices higher
Oil prices settled higher Monday, driven by growing bets on tighter global crude supplies as Russia is reportedly set to cut oil output at a time when Ukraine continues to target the country's refineries.
A deescalation in the Israel-Hamas conflict would likely soothe concerns over geopolitical instability in the oil-rich Middle East region.
APA Corporation (NASDAQ:APA), Copper Futures, Coterra Energy Inc (NYSE:CTRA) were among the biggest gainers.
(Peter Nurse, Ambar Warrick contributed to this article.)