Stocks End Modestly Lower as Investors Await Key Economic Data That Could Shape Fed Rate Cut Expectations

U.S. stocks ended modestly lower on Monday as investors awaited key economic data later in the week, especially Thursday's PCE inflation report, which could impact expectations for future Fed interest rate cuts.

Markets have priced out a rate cut at the March Fed meeting and pushed back expectations for cuts to June rather than May based on recent stronger-than-expected inflation data.

Chipmaker Nvidia rallied last week on strong earnings, helping push the Dow and S&P 500 to new highs and the Nasdaq near record levels.

Google-parent Alphabet fell as it plans to relaunch its paused AI tool ChatGPT rival in the coming weeks after fixing historical accuracy issues.

Domino's Pizza jumped after reporting better-than-expected quarterly same-store sales growth.