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Stocks Hold Steady Following S&P 500’s Record-Breaking Close Amid Human Connection

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“After hitting a major milestone, the stock market is holding steady. Find out what the S&P 500’s historic close means for your investments in simple, easy-to-understand terms.”

US stocks opened trading little changed on Monday after the S&P 500 index made history with a record-setting close. Investors are gearing up for the first key inflation update of the year and the next wave of earnings reports.

The S&P 500 (^GSPC) held steady following its milestone week, where it closed above 5,000 for the first time. The Dow Jones Industrial Average (^DJI) remained steady, while the Nasdaq (^IXIC) rose about 0.2%.

Stocks have been on the rise as the market continues to see better-than-expected corporate results. Big tech names have been driving the majority of the gains, and investors are eagerly awaiting the next round of quarterly reports from companies such as John Deere (DE), Coca-Cola (KO), Airbnb (ABNB), and Kraft Heinz (KHC) in the coming days.

However, the upcoming week presents a new challenge for the market, with the January Consumer Price Index (CPI) report due. This report will provide insights into the current state of inflation for 2024 and will set expectations for the timing and pace of potential Federal Reserve interest rate cuts.

Traders have scaled back bets on a March rate cut as cautious Fed officials continue to issue warnings. More Fed officials, including Michelle Bowman, Tom Barkin, and Neel Kashkari, are scheduled to address the market on Monday.

In other stock news, Arm Holdings (ARM) stock surged more than 30% following the issuance of better than expected revenue guidance, driven by the company’s positioning to benefit from the AI boom. Microsoft (MSFT) and Apple (AAPL) are competing for the highest market cap, while Alphabet (GOOGL), Amazon (AMZN), and Nvidia (NVDA) are also in a race to hit $2 trillion in valuation.

The oil and gas sector saw some action with Diamondback Energy (FANG) jumping over 8% after announcing its acquisition of Endeavor Energy for $26 billion in a cash and stock deal.

Overall, stocks are holding steady after the record-setting week for the S&P 500, as the market eagerly anticipates the latest economic and corporate data.

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