Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 26, 2023.
Brendan Mcdermid | Reuters
Stocks were little changed Monday as Wall Street looks to build on four straight positive weeks for the equity market.
The S&P 500 fell 0.2%, while the Nasdaq Composite dropped more than 0.1%. The Dow Jones Industrial Average shed 66 points, or 0.2%.
Wall Street is coming off the fourth straight winning week for all three major averages, as stocks have rallied since the 10-year Treasury yield retreated from the 5% mark it briefly topped in late October.
The rally has come despite warnings from some U.S. retailers that consumer spending is weakening, although Black Friday e-commerce spending jumped 7.5% from a year earlier. Some e-commerce stocks rose on Cyber Monday, with shares of Amazon and Shopify jumping 1.3% and 4%, respectively.
Weak spending data could suggest that the Federal Reserve’s rate hikes are finally starting to weigh on the broader economy.
“The New York Fed’s latest household survey shows that a record-high share of consumers are saying that it is much harder to obtain credit … This is what the textbook would have predicted. When the Fed raises interest rates it becomes more difficult for consumers to borrow,” Torsten Slok, Apollo Global Management chief economist, said in a note to clients Sunday.
The week ahead is also a busy one for economic indicators and Fed commentary. On Monday, new home sales data due out. Readings for consumer confidence and inflation follow later in the week.