US stocks slipped on Monday, with investors weighing the impact of inflation on future earnings and whether US companies can continue to handily exceed estimates as they had done in the third quarter.
Coming up, the market will be eyeing retail sales figures from the Commerce Department on Tuesday and earnings from big box retailers Target and Walmart as indicators of how consumers are feeling heading into the key holiday shopping season.
The benchmark S&P 500 on Monday climbed at the open, but ended lower. The tech-heavy Nasdaq Composite, dragged by electric vehicle maker Tesla, and the Dow Jones Industrial Average both slipped as well.
Equities also edged lower on Monday as Treasury yields climbed on expectations that the Federal Reserve may have to hike interest rates sooner than expected, Edward Moya, senior equity analyst at Oanda said.
“Inflation will likely get the Fed hiking quickly but then they can stop after a few hikes and markets can calm down,” Moya added. “At some point, the Fed will have to tighten financial conditions and that has some investors hesitating remaining full tilt with stocks.”
