Traders Await Inflation Reports, Earnings Season Kickoff as Market Edges Lower

Traders adopted a cautious approach on Monday as they awaited two critical inflation reports due later this week, seeking clarity on Federal Reserve interest rate policy.

Stock market movements were muted on Monday as traders awaited crucial inflation reports and the kickoff of earnings season, while energy stocks rallied on news of U.S. sanctions on Russian crude exports.

The S&P 500 slipped 0.1% to 9,334.3. The Nasdaq 100 declined 0.3% to 8,037.3. Both indexes fell on Friday after strong U.S. jobs data raised concerns about the Federal Reserve keeping interest rates higher for longer.

The Dow Jones Industrial Average rose 0.2% to 32,082.9.

Among S&P sectors, energy led gainers with a 1.2% advance, followed by a 0.2% gain in industrials. Tech and materials sectors slipped 0.3%.

Unusually, the tech-heavy Nasdaq 100 had a "sell-the-rally" tone, while the Dow boasted a "buy-the-dip" nature.

Usually, the tech-heavy indexes, such as the S&P 500 and Nasdaq 100, are known for "buy-the-dip" enthusiasm, while the price-weighted Dow tends to be slower to react to market selloffs.

Among FAANG stocks, Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN) slipped, while Meta Platforms Inc (NASDAQ:META), Alphabet Inc (NASDAQ:GOOGL) and Netflix Inc (NASDAQ:NFLX) edged higher.

Tesla (NASDAQ:TSLA) rose 1.3% after a report said the EV maker will begin accepting dogecoin for some merchandise.

Major bank earnings, kicking off the season, are due on Wednesday.

Advancing issues outnumbered declining ones on the NYSE by a 1.1-to-1 ratio; on Nasdaq, a 1.05-to-1 ratio favored decliners.

The S&P 500 posted 10 new 52-week highs and no new lows; the Nasdaq Composite recorded 23 new highs and 100 new lows.

Volume on the U.S. exchanges was 10.14 billion shares, compared with a 10-day average of 11.11 billion shares.

After U.S. hours, Advanced Micro Devices (NASDAQ:AMD) and Applied Materials (NASDAQ:AMAT) are among those set to report.