US stocks trade mixed as investors brace for January inflation data

• US stocks saw mixed trades on Monday as investors brace for the upcoming release of the January CPI report.
• The median forecast suggests year-over-year CPI will fall to 2.9%, a decline from the previous reading of 3.4%.
• A continued decline in inflation might push the Federal Reserve to cut interest rates sooner rather than later.

US stocks were mixed on Monday, with the Dow Jones Industrial Average closing at a record high while the S&P 500 and Nasdaq 100 edged lower.

Investors are now bracing for forthcoming January inflation data, with the CPI report scheduled to be released Tuesday morning.

Investors are looking for a continued decline in inflation. A lower reading would help solidify the Federal Reserve's decision to cut interest rates later this year.

"Tomorrow will be all about CPI as investors want to see signs that the disinflationary process continues to move in the right direction," NYSE senior market strategist Michael Reinking said in a Monday note to clients.

The median forecast suggests year-over-year CPI will fall to 2.9%, a decline from the previous reading of 3.4%. Meanwhile, year-over-year Core CPI is expected to drop to 3.7%, compared to its previous reading of 3.9%.

Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:

• S&P 500: 5,021.84, down 0.09%
• Dow Jones Industrial Average: 38,797.38, up 0.33% (+125.69 points)
• Nasdaq Composite: 15,942.55, down 0.30%

Here's what else happened today:

• The US now has an 85% chance of a recession in 2024, the highest probability since the Great Financial Crisis, economist David Rosenberg says.
• Bitcoin surged above $50,000 for the first time in 2 years on Monday as ETF demand grows and investors anticipate interest rate cuts.
• The homebuying season is set to pick up this spring, and economists at Redfin and Zillow expect up to a 5% price gain.
• The stock market will rise in 2024 even if the Federal Reserve decides against interest rate cuts and instead keeps rates unchanged, according to Bank of America.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil jumped 0.30% to $77.07 a barrel. Brent crude, the international benchmark, dropped 0.10% to $82.11 a barrel.
• Gold declined 0.23% to $2,034.10 per ounce.
• The 10-year Treasury yield rose one basis point to 4.17%.
• Bitcoin climbed 4.26% to $50,239.69.