by Sinéad Carew and Sruthi Shankar

(Reuters) – The New York Stock Exchange paused on Monday after three weeks of gains and as investors await key U.S. inflation figures this week to gauge the pace of the expected decline in interest rates this year .

The Dow Jones index lost 0.21%, or -81.33 points, to 39,431.51 points.

The broader Standard & Poor’s 500 lost -1.26 points, or 0.02% to 5,221.42 points.

The Nasdaq Composite advanced 47.37 points (0.29%) to 16,388.238.

Investors will learn on Tuesday and Wednesday the monthly indicators of producer prices (PPI) and consumer prices (CPI) respectively, while an intervention by Jerome Powell, the president of the Fed, is planned between these two statistics.

“Investors are like someone looking out the window to check the weather before getting dressed. Today and tomorrow, all eyes will be on Wednesday’s inflation report,” said Burns McKinney, portfolio manager at NFJ Investment Group in Dallas.

The U.S. Federal Reserve (Fed) is expected to cut the federal funds rate twice this year, starting in September, according to a large majority of economists polled by Reuters, who overall raised their inflation forecasts for the second time. consecutive month.

Traders currently expect the Fed to cut rates by 42 basis points by the end of the year, according to LSEG data. The first drop in borrowing costs is anticipated for September with a probability of 63%.

In values, Alphabet gained 0.3% after losing up to 2.7%, while the internet giant is due to present its new capabilities in terms of artificial intelligence at its developers conference on Tuesday.

OpenAI, creator of ChatGPT and backed by Microsoft, announced on Monday a new artificial intelligence model capable of realistic voice conversation and capable of interacting with text and images.

( Zhifan Liu)

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