In a mixed session, Wall Street stocks closed on Monday as investors prepared for the release of crucial U.S. economic data throughout the week, particularly the consumer price index (CPI), to assess the direction of Federal Reserve monetary policy. While the Dow Jones Industrial Average dipped, the benchmark S&P 500 index and the tech-heavy Nasdaq Composite Index ended higher.

Market participants are eagerly awaiting Wednesday's CPI reading and retailer earnings reports to gain insights into consumer demand. Analysts predict that the CPI data will likely show a 0.2% increase in headline inflation from June to July, remaining unchanged at 3% on a year-on-year basis. The CME's FedWatch Tool reveals that money markets are evenly split between anticipating a 25- or 50-basis-point cut in U.S. interest rates in September, with expectations of a total easing of 100 bps by the end of 2024.

Investors will also closely monitor Thursday's figures for July's U.S. retail sales, which are expected to show marginal growth. Potential weakness in these data could rekindle fears of a consumer slowdown and potential recession. This week, investors will be paying close attention to the upcoming earnings reports of major retailers such as Walmart (NYSE: WMT) and Home Depot (NYSE: HD).

According to preliminary data, the S&P 500 gained a marginal 0.03%, or 1.63 points, to close at 5,345.79 points. Meanwhile, the Nasdaq Composite increased by 0.21%, or 35.71 points, reaching 16,781.01. The Dow Jones Industrial Average experienced a decline of 0.35%, or 137.00 points, to settle at 39,360.54.

In other market news, KeyCorp (NYSE: KEY) observed a notable boost in its share price after Canada's Scotiabank purchased a minority stake in the U.S. regional lender through an all-stock deal worth $2.8 billion. On the other hand, Hawaiian Electric faced a significant drop as the utility company raised concerns about its "going concern" status.

Market experts believe that retail earnings will provide valuable insights into the overall health of consumer spending, particularly in light of the recent increase in the unemployment rate. Any surprises in the CPI data, with a higher reading than consensus, could potentially disappoint the market.

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