NEW YORK — Stocks began a busy week Monday with mixed trading on Wall Street keeping the market around its all-time high.
The S&P 500 rose 0.1% and is trading around its record high set last week. The Dow Jones Industrial Average rose 228 points, or 0.4%, as of 12:12 p.m. Eastern Time. The Nasdaq Composite Index fell 0.2%.
Energy stocks posted some of the biggest gains as oil prices surged. Chevron rose 1.4%.
Technology stocks represented the largest weightings in the market. Micron Technology fell 2.8% and Advanced Micro Devices fell 2.4%. They are among many companies in the industry whose shares are highly valued and tend to have strong market influence. They were also the driving force behind the broader market’s record gains throughout the year.
AP AUDIO: US stocks near their latest mixed trading record on Wall Street
US stocks are approaching their last record high.
These companies could face increased scrutiny from investors during this round of corporate earnings, as Wall Street tries to better understand whether stock gains made during the frenzy around artificial intelligence can translate into future growth.
“AI continues to support growth, strengthening the prospects of technology and critical suppliers throughout the supply chain,” Magdalena Ocampo, market strategist at Principal Asset Management, wrote in a report. “Yet uncertainty about the long-term impact of AI persists, making future gains more dependent on the production of profits rather than their potential.”
Stocks are hitting record highs often driven by the tech sector, but remain highly volatile on a daily basis, in part because of wild swings in oil prices and their impact on bond yields and inflation.
The price of Brent crude, the international standard, jumped 2% to $106.77 a barrel. Prices have fluctuated between $96 and nearly $110 over the past month due to uncertainty over the U.S. war against Iran and its continued impact on global energy supplies and inflation.
Prices jumped despite President Donald Trump’s announcement on social media Friday of his strike. an agreement to buy Russian diesel with Russian President Vladimir Putin, in a bid to curb soaring fuel prices in the run-up to the US mid-term elections on November 3. The plan, however, runs counter to U.S. efforts to reduce the flow of money Russia gets from its oil and gas sales that can be used to finance its war against Ukraine.
Rising oil prices have led to higher gasoline prices. This directly hits many people’s wallets, as gas is usually a necessary expense. The rise in diesel is more indirect, raising the costs of almost every product shipped, which typically leads to higher prices for everything from food to clothing.
Soaring energy prices and their impact on the broader economy will be in focus this week as Wall Street reviews several important economic updates. They include new data on the housing market, inflation and retail sales.
The big updates this week are reports about inflation hitting consumers and businesses. On Wednesday, the government will release the Consumer Price Index, or CPI, which measures price changes for a wide range of products and services. Economists expect the index to show that the inflation rate deteriorated to 3.6% in September from 3.4% in August.
An inflation report called the Producer Price Index will be released on Thursday and is also expected to show that inflation remains stubbornly high. It measures the inflation faced by businesses before it hits consumers.
An update on consumer response to high prices will be released on Thursday. Economists expect the September retail sales report to show that households have cut back on spending.
The inflation rate, by any measure, remains well above the Federal Reserve’s 2% target rate. This prompted the central bank to raise its benchmark interest rate at its latest meeting in a bid to curb inflation. Wall Street expects another rate hike before the end of the year.
Inflation and expectations of high interest rates have driven up Treasury yields in the bond market. The 10-year Treasury yield, which influences mortgage rates, recently reached its highest level since 2002. It has since eased slightly and stood at 5.24% late Friday. Trading in U.S. bonds was closed Monday for the Columbus Day holiday.
Rising mortgage rates have weighed on the housing market and Wall Street will receive an update on home sales on Tuesday.
The latest round of corporate earnings updates picks up pace this week with bank financial results. Citigroup, JPMorgan Chase and Wells Fargo will report results on Tuesday and Bank of America will report results on Wednesday. They posted record profits throughout the year and Wall Street expects the same for the final quarter.
European markets gained ground and Asian markets were mostly down. Tokyo markets were closed for a public holiday.
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AP Business Writers Michelle Chapman and Elaine Kurtenbach contributed to this report.
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