US stocks are mixed as investors prepare for Fed meeting, inflation numbers

US stocks were mixed as investors looked forward to the Federal Reserve’s next meeting and new information on inflation.

As of 11:13 ET (15:13 GMT), the Dow Jones Industrial Average gained 27 points or 0.1%. In contrast, the S&P 500 exhibited a slight decline of 0.1%, and the NASDAQ Composite experienced a larger decrease of 0.5%.

As earnings season comes to a close, investors are getting ready for the upcoming Federal Reserve rate decision. In economic news, the trade deficit in April increased, but not as much as anticipated.

In an interview with CNBC, Treasury Secretary Janet Yellen expressed her expectation of witnessing further bank mergers. The Federal Reserve is anticipated to disclose the outcomes of its recent stress test conducted on the 23 largest banks. Simultaneously, there are predictions that regulators will tighten capital requirements for banks.

“There is motivation to see some consolidation, and it wouldn’t surprise me to see some of that going forward,” Yellen told CNBC.

The Federal Reserve is scheduled to hold a meeting next week, and futures traders anticipate a pause in further interest rate increases. This pause aims to assess the effectiveness of the ten consecutive rate hikes implemented since last year in addressing inflationary pressures.

Before its decision, the consumer price index for May will be released on Tuesday.

Stitch Fix (NASDAQ:SFIX) stock surged by 28% after the online personal styling company announced better-than-expected third-quarter results. On the other hand, Campbell Soup Company (NYSE:CPB) exceeded quarterly profit estimates due to price increases and maintained its annual forecast, but shares declined by 5%.

Shares of Dave & Buster’s Entertainment (NASDAQ:PLAY) rose 24% after the arcade and restaurant chain surpassed expectations and announced its intention to open 20 new locations in India and Australia.