Stocks stay flat ahead of inflation updates

Major stock indexes on Wall Street gave up early gains and ended a choppy day of trading little changed Monday.

The Standard & Poor’s 500 and Nasdaq composite index each slipped 0.1% after shedding gains of 1% and 1.6%, respectively. The Dow Jones industrial average closed 0.1% higher.

Small-company stocks outpaced the broader market in a sign that investors were confident about the economy. The Russell 2000 rose 1%.

Investors are preparing for a busy week of economic updates that could help answer whether the Federal Reserve’s efforts to cool the economy and quell inflation are working.

“Early indications of inflationary pressures appear to be easing, which will be an important catalyst for the market,” said Quincy Krosby, chief global strategist for LPL Financial.

The S&P 500 fell 5.13 points to 4,140.06, while the Nasdaq slid 13.10 points to 12,644.46. The Dow added 29.07 points to close at 32,832.54. The Russell 2000 rose 19.38 points to 1,941.21.

Investors remain focused on inflation and its effect on businesses and consumers. The Fed is expected to raise short-term interest rates by another 0.75 percentage points at its next meeting.

The Federal Reserve Bank of New York on Monday released a survey of consumer expectations from July showing that there were “substantial declines” in inflation expectations.

The Labor Department will release its July report for consumer prices on Wednesday, followed by its report for prices at the wholesale level on Thursday.

This week’s inflation updates will follow reports last week showing the employment market remains strong. While that’s good for the economy, it has complicated the job of the Fed.

Investors are still reviewing the latest round of corporate earnings reports, which could also provide more details on how hard inflation is hitting consumers and businesses. Nvidia fell 6.3% for one of the biggest declines in the S&P 500 after it warned investors that its secondquarter revenue will fall short of forecasts because of weaker gaming revenue.

Generic drug maker Viatris rose 3.7% after beating Wall Street’s second-quarter earnings and revenue forecasts.

Technology stocks were the biggest drag on the market Monday, outweighing modest gains in other sectors. Microsoft fell 0.9%.

Retailers and communications stocks were among the biggest winners. Best Buy rose 2.8% and Facebook’s parent, Meta Platforms, rose 1.9%.

Clean energy companies gained ground after the Senate’s approval for Democrats’ big election-year economic package, which includes funding to help fight climate change. First Solar rose 4.7%.

Bond yields fell. The yield on the 10-year Treasury, which influences interest rates on mortgages and other consumer loans, slipped to 2.76% from 2.83% late Friday.