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The Dow Jones Industrial Average (DJIA) eased slightly on Monday, paring last week’s gains. A quiet start to the week is giving investors some room to breathe before the next round of key economic data, as well as the start of this year’s economic symposium at Jackson Hole.

The Dow Jones clipped into fresh all-time highs last week, reaching a record peak of 45,277 before easing back below 45,000. Despite cooling bullish pressure, the Dow is still holding steady on the high end, trading well above the 50-day Exponential Moving Average (EMA) near 43,920.

Central bank policy to get a front seat this week

Investors are getting an easy start, with little of note on the data docket through the front half of the trading week. Meeting Minutes from the Federal Reserve’s (Fed) latest interest rate decision will be released on Wednesday, but the key events this week will be S&P Global Purchasing Managers Index (PMI) survey results for August, slated for Thursday. The annual Jackson Hole Economic Policy Symposium hosted by the Fed Bank of Kansas City also kicks off this Thursday, and traders should expect soundbites and headlines to leak out of the policy shindig through the bottom half of the trading week. Fed Chair Jerome Powell will speak at Jackson Hole on Friday.

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US inflation data sparked some fresh concerns among global markets last week, however, overall investor sentiment is still pricing in a Fed rate cut on September 17. According to the CME’s FedWatch Tool, rate traders are pricing in over 80% odds of at least a quarter-point rate cut next month, with nearly 90% odds of a follow-up cut in December.

Dow Jones daily chart

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