US stocks waver as investors await latest inflation updates

Statues adorn the facade of the New York Stock Exchange Thursday, July 14, 2022, in New York. Stocks are opening slightly higher on Wall Street with gains spread widely across sectors on Monday, Aug. 8, 2022. (AP Photo/John Minchillo, File)

The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5, following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 8, 2022. Asian stocks were mixed Monday after strong U.S. jobs data cleared the way for more interest rate hikes and Chinese exports rose by double digits. (AP Photo/Ahn Young-joon)

A currency trader passes by screens showing the Korea Composite Stock Price Index (KOSPI), left, and the exchange rate of South Korean won against the U.S. dollar, center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 8, 2022. Asian stocks were mixed Monday after strong U.S. jobs data cleared the way for more interest rate hikes and Chinese exports rose by double digits. (AP Photo/Ahn Young-joon)

Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 8, 2022. Asian stocks were mixed Monday after strong U.S. jobs data cleared the way for more interest rate hikes and Chinese exports rose by double digits. (AP Photo/Ahn Young-joon)

Stocks turned mixed in afternoon trading on Wall Street Monday as investors prepare for a busy week of updates on inflation.

The S&P 500 gave up its early gains and was down 0.2% as of 2:35 p.m. Eastern. The Dow Jones Industrial Average rose 10 points, or less than 0.1%, to 32,814 and the Nasdaq slipped 0.3%.

Small-company stocks outpaced the broader market in a sign that investors were confident about the economy. The Russell 2000 rose 0.8%.

Technology stocks weighed most on the market. Pricey stocks in the sector tend to push the market higher or lower with more weight. Microsoft fell 1.2%.

Retailers and communications stocks were among the biggest winners. Target rose 0.6% and Facebook's parent, Meta, rose 2.3%.

Clean energy companies gained ground following the Senate's approval for Democrats’ big election-year economic package, which includes funding to help fight climate change. First Solar rose 5.1%.

Bond yields fell. The yield on the 10-year Treasury slipped to 2.77% from 2.83% late Friday.

The benchmark S&P 500 index is coming off three consecutive weekly gains. Investors remain focused on inflation and its impact on businesses and consumers, along with the Federal Reserve's efforts to fight higher prices. The central bank has been aggressively raising interest rates to pump the brakes on economic growth and rein in record-high inflation. The Fed is expected to hike short-term interest rates by another 0.75 percentage points at its next meeting.

Wall Street is worried that the Fed could hit the brakes too hard on the economy and bring on a recession. Updates this week on inflation could provide more clarity on whether the Fed will remain aggressive.

The Federal Reserve Bank of New York on Monday released a survey of consumer expectations from July showing that there were “substantial declines” in inflation expectations for everything from food and gas to home prices.

The Labor Department will release its July report for consumer prices on Wednesday, followed by its report for prices at the wholesale level on Thursday.

This week's inflation updates follow reports last week showing the employment market remains strong. While that's good for the economy, it has complicated the job of the Fed, which may be forced to continue with aggressive interest rate hikes intended to cool the economy and soaring inflation.

Investors are still reviewing the latest round of corporate earnings, which could also provide more details on how hard inflation is hitting consumers and businesses. Nvidia fell 8.4% for the biggest drop in the S&P 500 after it warned investors that its second-quarter revenue will fall short of forecasts because of weaker gaming revenue.

Generic drugmaker Viatris rose 4% after beating Wall Street’s second-quarter earnings and revenue forecasts.