Stock market today: Here are top things that investors are watching

We’re getting deeper into the final week of the month and investors who spent the weekend fretting about a days-long stock market slide are trying to find reasons for optimism.

Futures were up ahead of Monday’s opening bell and, while Wall Street certainly didn’t recoup last week’s losses, marginal gains throughout the day fueled hope that the recent downturn was just a blip.

In the end, Monday didn’t deliver the rebound many had hoped. The only winner was the Dow, which ticked up a fraction of a percent. The S&P 500 and Nasdaq fell by 0.5% and 1.2%, respectively.

Highlights of the week

Trading began yesterday as Wall Street tried to shake off a dreadful week capped off by a Friday that saw all three major indexes drop by anywhere from around 1.7% to 2.2%.

And while the day’s mixed result wasn’t disastrous news to investors, a rally is anything but guaranteed.

Important updates and reports will be emerging from various sources over the next few days, each with the potential to give the markets a boost … or let even more air out of their sails:

• Inflation numbers: The latest Personal Consumption Expenditures price index is expected to drop on Friday, giving Americans a clear picture of the impact inflation is having on consumer spending.

• Economic indicators: A range of additional reports will provide a broader look at the health of the U.S. economy, including the state of the housing market and consumer confidence as well as a GDP update.

• Corporate reports: Earnings season continues with quarterly reports expected from companies across multiple industries, including AI chipmaker Nvidia (NVDA), automaker Stellantis (STLA), Home Depot (HD), and Lowe’s (LOW).

Among today’s items of interest are remarks from Dallas Fed President Lorie Logan and Richmond Fed President Tom Barkin.

The S&P Case-Shiller Home Price Index and FHFA House Price Index are also set to drop before the end of the day.

Now for the bigger picture

While any number of economic reports can influence the markets to some extent, certain factors have the potential to send things in one direction or the other for months to come.

One such element is the Fed’s decision on interest rates. Central bankers tend to put the most stock in the PCE index, so many investors are already awaiting Friday’s report.

And after a preliminary reading showed slower-than-expected economic growth of 2.3% during the fourth quarter of 2024, revisions set to be released on Thursday will offer even more insight into overall market health.

Then there’s the AI factor.

Tech companies like Nvidia supercharged the stock market throughout much of last year, but now there’s some uncertainty about whether the Nasdaq darling will maintain its status at the top of the heap.

In the wake of an international splash made by the release of China’s DeepSeek AI platform, eToro global market analyst Lale Akoner explained: “It’s definitely one of the top things that the markets will be looking at [this] week.

They really want to see whether the DeepSeek news … is solid in terms of disrupting these types of companies’ margins in the future.”

Combine all that with yesterday’s news that President Trump told Canada and Mexico that tariffs will “go forward,” and this week’s developments have the potential to send ripples throughout Wall Street and beyond.