US close: Stocks start data-heavy week with modest gains

Wall Street stocks ended the session higher on Monday as market participants braced for a week full of key economic reports.

At the close, the Dow Jones Industrial Average was up 0.27% at 34,955.89, while the S&P 500 was 0.71% firmer at 4,575.52 and the Nasdaq Composite saw out the session 1.31% stronger at 14,354.90.

The Dow closed 94.65 points higher on Monday, building on gains recorded at the end of last week after the European Union struck a deal with the US to lower its Russian energy usage.

While investors were continuing to monitor developments in Russia's war on neighbouring Ukraine, with delegations from both countries traveling to Turkey to engage in talks, and also keeping a close eye on the Federal Reserve after the central bank's chairman Jerome Powell promised to be tough on inflation, the week's primary focus will be a number of important data points scheduled for publication over the next few days.

Traders were holding out for tomorrow's consumer confidence figures and the Labor Department's Job Openings and Labor Turnover Survey, the Fed's main employment data reference point, while the ADP will also release its private payrolls data on Friday ahead of the closely watched nonfarm payrolls report.

Oil prices headed south throughout the session, with West Texas Intermediate down 6.97% at $105.96 per barrel, and Brent crude futures were 9.32% softer at $109.40.

Also in focus, the yield on the five-year Treasury note rose to 2.565%, while the 30-year yield slipped to 2.551%, with the inversion raising some recessionary concerns. The yield on the benchmark 10-year Treasury note remained elevated at 2.465% at the close of trading on Monday.

On the macro front for today, the US goods trade deficit narrowed to $106.59bn in February, down from a revised all-time high of $107.57bn in the previous month, according to an advance estimate from the Census Bureau. Exports rose 1.2% to $157.16bn, boosted by sales of industrial supplies, foods, feeds & beverages, and consumer goods, while, imports were up at a softer 0.3% to $263.75bn as higher purchases of consumer goods, industrial supplies and capital goods were partially offset by lower imports of automotive vehicles and foods, feeds & beverages.

Elsewhere, president Joe Biden will deliver his 2023 federal budget proposed tax hikes on the ultra-wealthy and corporations, while also providing billions of dollars in new spending for the Defense and Justice Departments. The proposal, which has been sent to Congress, also touts a reduction in the federal budget deficit of more than $1.0trn over the next 10 years, paid for, in part, by raising the corporate tax rate from 21% up to 28% and a new 20% minimum tax on the top 0.01% of earners and households worth more than $100.0m.

In the corporate space, Tesla shares rallied on news that the electric carmaker was looking to split its stock in order to pay dividends to shareholders, while FedEx revealed that founder Fred Smith will be stepping down as CEO.