Wall Street Ends Mixed as Investors Await CPI and Bank Earnings

Wall Street closed mixed on Monday as investors prepared for crucial U.S. inflation data and quarterly earnings from major banks. Rising oil prices and geopolitical tensions also influenced market sentiment ahead of a busy week for financial markets.

The S&P 500 slipped 0.1% to 7,807.36, while the Nasdaq Composite declined 0.4% to 27,245.90. Meanwhile, the Dow Jones Industrial Average gained 0.4% to finish at 51,850.31.

U.S. stocks entered the week following solid gains supported by expectations of strong corporate earnings. However, trading remained subdued as the Treasury bond market closed for the Columbus Day holiday.

Technology stocks faced selling pressure, with the S&P 500 technology sector falling 1%. Micron Technology dropped 3.9% amid growing competition from Chinese memory chipmaker ChangXin Memory Technologies and concerns about potential labor strikes at its Taiwan facilities.

Meanwhile, Meta Platforms climbed 3.4% after introducing its advanced Muse Wonder and Muse Wonder Full artificial intelligence models. Salesforce gained 2.1% after Bank of America upgraded the software company's rating from Underperform to Buy, citing improving confidence in its enterprise software business.

Investors are now focused on the third-quarter earnings season, beginning Tuesday with JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup. Bank of America and Morgan Stanley will report Wednesday.

Bank earnings will provide important insights into lending activity, consumer financial health, credit quality, and profitability following the recent surge in U.S. Treasury yields.

Attention will also turn to the September U.S. Consumer Price Index (CPI) report on Wednesday and Producer Price Index (PPI) data on Thursday. Both releases could influence expectations for the Federal Reserve's next interest rate decision.

Meanwhile, geopolitical developments pushed oil prices higher. President Donald Trump announced plans for Russian diesel supplies following discussions with Vladimir Putin and described an immediate energy ceasefire between Russia and Ukraine, although Ukrainian President Volodymyr Zelenskyy disputed its implementation.

Tensions escalated further after an attack attributed to Iran-backed Houthi forces at Riyadh's King Khalid International Airport reportedly killed 13 people.

Brent crude futures rose 1.3% to $106.09 per barrel, adding inflation concerns as investors awaited economic data and corporate earnings that could determine Wall Street's next direction.