news/AMZN/2023.01.09/S&P 500 near flat as investors weigh likelihood of less aggressive rate hikes.txt

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)*Tech shares gain*Macy's, Lululemon drop on holiday-quarter warningsNEW YORK, Jan 9 (Reuters) - The S&P 500 index
closed barely changed on Monday as expectations that the Federal
Reserve will become less aggressive with its interest rate hikes
were offset by lingering worries about inflation.The Dow edged lower, and the Nasdaq Composite ended
off the day's highs.Investors are awaiting comments Tuesday from Fed Chair
Jerome Powell, who some strategists expect could say that more
time is needed to show inflation is under control.Money market bets were showing 77% odds of a 25-basis point
hike in the Fed's February policy meeting.A consumer prices report due Thursday could be key for rate
expectations, said Quincy Krosby, chief global strategist, LPL
Financial in Charlotte, North Carolina. "The CPI report this
week is going to be essential for fine-tuning the Fed funds
futures market."After recent strong market gains, "you're seeing a little
bit of profit-taking ahead of the CPI number due out this week,"
said Paul Nolte, portfolio manager at Kingsview Investment
Management in Chicago.The technology sector gained as Treasury yields
fell. Consumer discretionary stocks also rose, with
Amazon.com Inc up after Jefferies said it saw cost
pressures easing for the e-commerce giant in the second half of
the year.Also, S&P 500 companies are about to kick off the
fourth-quarter earnings period, with results from top U.S. banks
expected later this week.According to preliminary data, the S&P 500 lost 2.74
points, or 0.07%, to end at 3,892.34 points, while the Nasdaq
Composite gained 66.13 points, or 0.63%, to 10,635.96.
The Dow Jones Industrial Average fell 111.48 points, or
0.33%, to 33,519.13.Friday's jobs report, which showed a moderation in wage
increases, also lifted hopes that the Fed might become less
aggressive in its rate-hike push to reduce inflation.Tesla Inc rose after the electric-vehicle maker
indicated longer waiting times for some versions of the Model Y
in China, signaling the recent price cuts could be stoking
demand.Macy's Inc and Lululemon Athletica Inc fell
after both retailers issued disappointing holiday-quarter
forecasts.
(Additional reporting by Shubham Batra, Amruta Khandekar and
Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and
Richard Chang)