Wall St indexes subdued as investors position for busy week of data

NEW YORK: Wall Street’s main indexes were subdued in choppy trading on Monday, as investors braced for a slew of economic data expected this week and parsed comments from key Federal Reserve policymakers for clues on the interest rate outlook.

Traders also assessed a report that White House economic adviser Kevin Hassett’s candidacy for the Fed chair role received some pushback from people close to US President Donald Trump.

Another top contender for the position is former Fed Governor Kevin Warsh, according to a separate report last week.

Speculation has been rife about the likely candidates as Jerome Powell’s term ends in May. Expectations for a dovish Fed chair have fueled bets for interest rate cuts next year, despite sticky inflation and persistent price pressures in other developed markets strengthening calls for rate hikes.

“It’s important to remember that the chairman is one of 12 people who vote on policy, although his opinion certainly matters more. But there was certainly a concern that Kevin Hassett was more about politics and less about Fed independence than other candidates might be,” said Steve Sosnick, chief market analyst at Interactive Brokers.

At 11:33 a.m. ET, the Dow Jones Industrial Average fell 31.60 points, or 0.07 percent, to 48,426.45. The S&P 500 was flat at 6,827.46, while the Nasdaq Composite lost 45.22 points, or 0.19 percent, to 23,149.95.

Six of the 11 S&P 500 sectors climbed, with healthcare up 1 percent. Tesla gained 4.3 percent after CEO Elon Musk said it was testing its robotaxis without safety monitors in the front passenger seat.

Energy stocks lost 1.2 percent, tracking a decline in crude prices.

The S&P 500 and the Nasdaq had logged their steepest daily declines in more than three weeks on Friday, as concerns about inflation and debt-fueled AI investments pulled the indexes further away from record highs.

These concerns have weighed on US equities several times over the past three months, helping Europe’s STOXX 600 outperform the Nasdaq and the S&P 500 on a quarterly basis.

The nonfarm payrolls figures for October and November are due later this week, along with reports on retail sales, business activity and inflation. October’s jobs data was delayed by the government shutdown earlier this quarter.

Among other stocks, ServiceNow slid 10.5 percent following a report that the cybersecurity company is in advanced talks to buy startup Armis.

IRobot slumped 73.1 percent after the Roomba vacuum-cleaner maker filed for bankruptcy protection.

Advancing issues outnumbered decliners by a 1.04-to-1 ratio on the NYSE. Declining issues outnumbered advancers by a 1.52-to-1 ratio on the Nasdaq.

The S&P 500 posted 22 new 52-week highs and six new lows, while the Nasdaq Composite recorded 111 new highs and 154 new lows.