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Stock Market Today: S&P 500 flat ahead of key inflation data

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Investing.com —  The S&P 500 was flat Monday as investors awaited key inflation report due later this week that will likely play a role in shaping the Federal Reserve’s monetary policy outlook. 

At 16.00 ET (21:00 GMT), the Dow Jones Industrial Average fell 81 points, or 0.2%, the S&P 500 was 0.02% lower and the NASDAQ Composite gained 0.3%.

The main Wall Street indexes have started the new week on a positive note, after last week posting three straight weeks of gains, buoyed by some strong earnings, as well as the prospect of eventual interest rate cuts this year. 

Inflation data to dominate market focus 

Investor sentiment on risk assets remains cautious as investors look ahead to key inflation data this week, with the producer price index and consumer price index due on Tuesday and Wednesday, respectively.

The data are set to arrive following a string of hotter-than-expected inflation reports in Q1 that forced investors to not only push out rate cut bets but reduce the number of cuts expected to just two for the year. 

The data arrive just as fed speakers continue to signal higher for longer interest rates.

Fed Vice Chair Philip Jefferson said Monday that current level level of interest rates is appropriate until further signs that inflation is on a sustainable path toward the 2% target. 

Arm soars on AI plans 

Arm Holdings (NASDAQ:ARM) gained 7% after announcing plans to develop artificial-intelligence chips, according to a report in Nikkei Asia, with the U.K.-based chip designer announcing plans to set up an AI chip division.

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Arm aims to build a prototype by spring 2025, the report said, with mass production, likely to be handled by contract manufacturers, expected to start in the autumn of 2025.

Intel (NASDAQ:INTC) rose more than 2% after the Wall Street Journal reported that the tech giant was in advanced talks with Apollo Global Management (NYSE:APO) for the manufacture of a $11 billion chip plant in Ireland.

Also, Tesla (NASDAQ:TSLA) gained 2% after Reuters reported that President Joe Biden is set to announce new China tariffs as soon as Tuesday, targeting sectors including electric vehicles, medical supplies and solar equipment.

Ndivia inches higher, GameStop (NYSE:GME) jumps on meme stock fever

GameStop shares rallied more than 74% in the premarket as the traders of the meme stock cheered the first post from “Roaring Kitty” in three years. 

Nvidia (NASDAQ:NVDA) was flat even as Jefferies lifted its price target on the chipmaker to $1,200 a share from $620, citing Nvidia as its “favorite” AI chip stock. 

(Peter Nurse, Ambar Warrick contributed to this article.)

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