U.S. equity markets advanced Monday as investors turned their attention to a series of upcoming economic reports that may influence the Federal Reserve’s interest rate trajectory. n nThe S&P 500 gained 0.3% in early trading, recovering part of its previous week’s loss. The Dow Jones Industrial Average rose 100 points, or 0.2%, by 9:35 a.m. Eastern Time, while the Nasdaq Composite increased by 0.4%. n nSome of the leading artificial intelligence–focused stocks that had dragged down indices last week stabilized. Nvidia, widely seen as a bellwether for the AI sector, climbed 1.3%, providing strong support to the S&P 500 after its 0.6% weekly decline. Palantir Technologies added 2.1%. n nHowever, not all tech names rebounded. Oracle fell another 2.1% following a 12.7% drop the prior week—the company’s worst performance in over seven years. Broadcom declined 1.4%. n nSentiment around AI equities has been cautious, as concerns grow that massive investments in semiconductors and data infrastructure may not yield proportional returns in profitability or productivity. These doubts are creating fractures in a sector that previously fueled much of the U.S. market’s record-breaking rally. n nBeyond technology, market participants are closely watching economic data. The November jobs report is due Tuesday, with economists forecasting a net addition of 40,000 jobs. Thursday will bring the latest consumer inflation figures, projected at 3.1%—still above the desired target for households and policymakers. n nThese metrics are critical as the Federal Reserve weighs whether a weakening labor market or persistent inflation poses the greater threat. Adjusting interest rates to address one issue could exacerbate the other in the short term. n nInvestors hope for a moderate slowdown in employment—enough to prompt rate cuts without triggering a recession. Lower borrowing costs are generally favorable for asset prices, even if they risk fueling inflation further. n nChris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, noted that the current environment may reward weaker-than-expected job data. “As long as the numbers don’t suggest employment is falling off a cliff,” soft figures could be positively received, he said. n nThe unemployment rate will be particularly scrutinized, as overall job growth is being affected by a decline in immigrant labor. Forecasters expect the rate to hold at 4.4%, near its highest level since 2021. n nIn bond markets, Treasury yields declined ahead of the data releases. The 10-year yield dropped to 4.16% from 4.19% on Friday. Earlier Monday, a manufacturing gauge for New York state unexpectedly weakened, contrary to expectations of continued expansion. n nElsewhere, iRobot shares plunged 69.9% after the company filed for Chapter 11 bankruptcy over the weekend. Stockholders are likely to face total losses. The Roomba maker has reached an agreement with Picea, its primary manufacturer, to be acquired through a court-supervised process. n nGlobal markets showed mixed results. European indexes gained after Asian markets closed lower. Hong Kong’s index dropped 1.3% and Shanghai fell 0.6% following data showing a decline in China’s fixed-asset investment, signaling ongoing weakness in the world’s second-largest economy. Japan’s Nikkei 225 declined 1.3%, despite a slight improvement in business sentiment, which raised speculation of a potential interest rate hike by the Bank of Japan. n
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US stocks tick higher ahead of a week full of economic updatesn
NEW YORK (AP) — Wall Street is rising on Monday at the start of a week full of economic reports that could drive where interest rates, and thus stock prices, go. n nThe S&P 500 rose 0.3% in early trading and clawed back some of its loss from last week. The Dow Jones Industrial Average was up 100 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.4% higher. n nSome of the superstar artificial-intelligence stocks that dragged the market lower last week steadied themselves. Nvidia, the chip company that’s become the face of the AI boom, rose 1.3% and was the strongest force lifting the S&P 500 following its dip of 0.6% last week. Palantir Technologies rose 2.1% n nBut some AI stocks continued to struggle. Oracle dropped another 2.1% following its 12.7% tumble last week, which was its worst in more than seven years. Broadcom fell 1.4%. n
AI stocks have been shaky on worries that all the billions of dollars flowing into chips and data centers may not produce a big-enough payoff of profits and productivity to make it worth it. The doubts are causing cracks for the industry, whose earlier surges was the main driver for the U.S. market’s rally to records. n
Besides AI, the main focus on Wall Street this week will be what several big updates on the U.S. economy’s health say. n
On Tuesday will come the jobs report for November, and economists expect it to show employers added 40,000 more jobs than they cut during the month. Thursday will bring an update on the inflation that U.S. consumers are feeling, and economists expect it to show inflation was at 3.1% last month, still higher than households and policymakers would like. n
Such data is under the microscope because the Federal Reserve is trying to figure out if a slowing job market or high inflation is the bigger problem for the economy. The Fed is in a potentially tough spot because fixing one of those problems by moving interest rates up or down would likely make the other worse in the short term. n
The hope on Wall Street is that the job market weakens, but only by a little: enough to get the Fed to lower interest rates but not so much that a recession swamps the economy. Wall Street loves lower interest rates because they can give the economy and prices for investments a boost, even if they also may worsen inflation. n
“With the Fed still appearing to be more focused on labor-market weakness than inflation, we’re likely facing a ‘bad news is good’ scenario for the jobs report,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. n
“As long as the numbers don’t suggest employment is falling off a cliff,” that would mean the market would likely welcome soft numbers, he said. n
The spotlight will be brightest on the unemployment rate, not the overall job growth numbers, because the latter is feeling downward pressure from a drop-off in immigrant workers. Economists expect Tuesday’s report to show the unemployment rate at 4.4%, which would keep it close to its highest and worst level since 2021. n
Treasury yields eased in the bond market ahead of the updates. A report earlier on Monday morning also said that a measure of manufacturing strength in New York state unexpectedly weakened, when economists expected to see continued growth. n
The yield on the 10-year Treasury fell to 4.16% from 4.19% late Friday. n
Elsewhere on Wall Street, shares of iRobot tumbled 69.9% after the maker of Roomba vacuums said holders of its stock will likely face a total loss after it filed for Chapter 11 bankruptcy protection over the weekend. The company has reached an agreement with its primary contract manufacturer, Picea, to buy it through a court-supervised process. n
In stock markets abroad, indexes rose in Europe following weaker finishes in Asia. n
Indexes fell 1.3% in Hong Kong and 0.6% in Shanghai after the Chinese government reported a drop in investment in factory equipment, infrastructure and other fixed assets. It’s the latest signal that demand in the world’s second-largest economy remains weak. n
Japan’s Nikkei 225 dropped 1.3% after a quarterly “tankan” survey of big manufacturers by the central bank showed a slight improvement in sentiment. That could encourage the Bank of Japan to go ahead with a hike to interest rates. n
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AP Business Writer Elaine Kurtenbach contributed.