08/07/24 Briefing

US stocks nudged up early Monday ahead of a consequential week that could provide key signals for the near-term path of interest rates.

The S&P 500 (^GSPC) rose 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) was up 0.1% after each index notched its latest record on Friday. The Dow Jones Industrial Average (^DJI) jumped about 0.5%.

The S&P and Nasdaq are looking to build on records secured in the wake of Friday's jobs report, which signaled continued cooling in the labor market. That prompted an influx of bets on a September rate cut from the Federal Reserve.

Several events this week could add to that growing rate-cut momentum. Fed Chair Jerome Powell is set to appear in Congress for semiannual testimony on Tuesday and Wednesday. Then comes the latest Consumer Price Index print, set for release on Thursday. Economists expect headline inflation rose 3.1% over the last year, which would match the lows where the CPI started the year.

In other market-moving events, a left-wing coalition in France garnered the most votes in the country's election, stunning a far-right that was hoping to secure a parliamentary majority. The benchmark French index (^FHCI) rose slightly.

In corporates, Boeing (BA) pleaded guiltyto a criminal conspiracy charge in relation to two fatal 737 Max crashes. Shares were up nearly 1% in early trading.

Meanwhile Tesla stock (TSLA) erased early session losses to turn positive as shares of the EV giant were on track to extend an eight-day winning streak.