Wall Street slips ahead of reports on inflation and retailer earnings

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Wall Street is edging lower to start a week that could bring more action to financial markets.

Wall Street is edging lower Monday to start a week that could bring more action to financial markets, with several big reports on the calendar. The Standard & Poor's 500 was 0.4% lower in early trading. The Dow Jones industrial average was down 37 points, or 0.1%, as of 9:45 a.m. Eastern, and the Nasdaq composite was 0.7% lower.

Not only do higher rates and yields hurt prices for investments, they also drag on the economy broadly and raise the pressure on the entire financial system. Federal Reserve Chair Jerome Powell gave some hope recently that the rise in longer-term Treasury yields could act as substitutes for further rate hikes, which could mean the Fed may be done with them. That in turn could push up the timeline for a potential cut to interest rates, which can juice financial markets.

 

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