US Stocks Slip Amid High Inflation Concerns

US stocks slipped slightly on Monday, but remain near record highs ahead of key profit reports from retailers like Home Depot and Target. The S&P 500 dipped 0.1% while the Dow Jones Industrial Average fell by 163 points, or 0.3%. The Nasdaq composite was virtually unchanged.

The profit reports are crucial as they will give insight into how consumers are dealing with high inflation and a slowing job market. The S&P 500 index is on track to deliver growth of roughly 50% for earnings per share in the spring, which would be the best since five years ago when the economy was recovering from the COVID pandemic.

The price of Brent crude rose 0.4% to $88.87 on Monday, while Treasury yields edged higher following their recent big moves. The 10-year Treasury yield ticked up to 4.70% from 4.68%, largely due to the impact of higher oil prices on inflation and interest rates.