Market Stays Flat As Investors Anticipate Key Economic Events; Energy Stocks Lead Gains, Regional Banks Decline: What's Driving Markets Monday?

Wall Street is experiencing a quiet trading session on Monday, with major indices showing little movement by midday in New York, as traders maintain a cautious stance ahead of the highly anticipated inflation report and Fed meeting this Wednesday.

U.S. stocks have erased early session losses sparked by rising volatility in Europe after the latest Parliamentary elections revealed increased support for far-right parties and Emmanuel Macron’s surprising call for snap elections in France.

The S&P 500 is 0.2% higher, while the tech-heavy Nasdaq 100 slightly outperforms the broader market, rising 0.3%.

Blue-chip stocks soften by 0.1%, while small caps trade mostly flat for the day.

Treasury yields inch higher by about 3 basis points across long-dated maturities, with the benchmark 10-year Note trading at a 4.47% yield. The iShares 20+ Year Treasury Bond ETF TLT falls 0.7%, eyeing its third straight session of declines.

A trade-weighted measure of the U.S. dollar, as tracked by the Invesco DB USD Index Bullish Fund ETF UUP, has risen by 0.2%, buoyed by the greenback’s gains against the euro, with the EUR-USD exchange rate down 0.4%.

Commodities trade stronger across the spectrum, with oil and natural gas prices rallying by 2.5% and 3.7%, respectively, driving the outperformance of energy-related stocks. Metals are also in the green, with copper, silver, and gold up 2.2%, 1.7%, and 0.7%, respectively. Bitcoin BTC/USD is 0.4% higher, reaching $69,950.

Monday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %chg
Nasdaq 100	19,053.31	0.3%
S&P 500	5,355.63	0.2%
Russell 2000	2,023.34	0.1%
Dow Jones	38,746.91	-0.1%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY is 0.2% higher to $534.86.
• The SPDR Dow Jones Industrial Average DIA is flat at $388.21.
• The tech-heavy Invesco QQQ Trust (ARCA: QQQ) rises 0.4% to $465.35.
• Sector-wise, the Energy Select Sector SPDR Fund XLE outperforms, up by 1.1%, while the Financials Select Sector SPDR Fund XLF eases 0.5%.
• Industry-wise, the SPDR S&P Oil & Gas Exploration and Production ETF XOP is the session top performer, up 2.2%, while the SPDR S&P Regional Banking ETF KRE lags behind, down 1.7%.

Monday’s Stock Movers

• Southwest Airlines Co. LUV has risen by nearly 8%, after Elliot Investment unveiled a $1.9 billion stake in the airline company.
• Huntington Bancshares Inc. HBAN is down over 5%, after the company slashed its annual net interest income forecasts.
• Texas Pacific Land Corp. TPL and RB Global Inc. RBA are up over 23% and 9%, respectively, on the news that they will be included in the S&P MidCap 400 Index.
• CrowdStrike Holdings Inc. CRWD, KKR & Co. Inc. KKR and GoDaddy Inc. GDDY have risen 9.6%, 11.3% and 2.1%, respectively, as Dow Jones Indices announces the companies’ inclusions in the S&P 500 index.
• Tellurian Inc. TELL rockets 13.5%, extending a 5-day rally that began last week following rumors of Saudi giant Aramco being in discussions with the company for a liquefied natural gas (LNG) project.
• GameStop Corp. GME has extended Friday’s losses following the Roaring Kitty’s livestream, down by an additional 15% on Monday, further cooling the meme-stock sentiment. AMC Entertainment Inc AMC is 6% lower.
• Shares of ICC Holdings, Inc ICCH have gained over 35% after Mutual Capital Group announced plans to acquire the company.

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Image generated using artificial intelligence via Midjourney.