US stocks react to shifting focus on economic front

U.S. stocks closed with modest losses, reflecting a shift in focus from the AI-driven rally of the previous week to forthcoming economic data

U.S. equities closed the trading day on Monday with slight losses, marking a shift in focus from the preceding week’s rally driven partly by artificial intelligence.

Investors directed their attention toward impending economic data, particularly its potential impact on the anticipated Federal Reserve interest rate cut timeline.

Monday’s session witnessed a modest dip in the stock market, signifying a recalibration of market sentiment. 

The surge fueled by AI advancements in the previous week gave way to a more cautious approach as market participants awaited crucial economic indicators. 

The central point of interest revolved around the timing of the expected interest rate cut by the Federal Reserve and how upcoming data releases might influence this decision.

Market analysts are closely monitoring the release of January’s Personal Consumption Expenditures Price Index (PCE) scheduled for Thursday. 

The PCE holds special significance as it is considered the Federal Reserve’s preferred metric for gauging inflation. 

Source: Newsroom

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