
The S&P 500 closed near the flat line on Monday as investors looked ahead to pivotal inflation readings, including April's consumer price index report.
The broad market index was little changed with a small gain of 0.05%, ending the session at 4,138.12. The Nasdaq Composite added 0.18%, closing at 12,256.92. The 30-stock Dow Jones Industrial Average slipped 55.69 points, or 0.17%, to end at 33,618.69.
"At first glance, markets appear to be assuming a more tepid approach on Monday as they digest everything we learned last week, contemplate emerging tail risks, and prepare for more data later this week," according to the Goldman Sachs trading desk. "A look beneath the surface reveals a bit more agitation than that first glance might reveal."
Traders are awaiting key data that will inform the Federal Reserve's forward path: April's CPI report is due Wednesday, followed by the producer price index on Thursday.
Separately, select bank shares ticked higher to begin the week. Shares of PacWest gained 3.6%. Late Friday evening, the bank announced that it would cut its dividend to just 1 cent per share from 25 cents per share in the prior quarter. Western Alliance shares ended the day up about 0.6%. Big banks Wells Fargo and JPMorgan Chase also rose.
Investors are debating whether the banking crisis has finally abated, according to Oanda senior market analyst Edward Moya.
"It looks like Wall Street will try to find out if bank stress is nearing the end," Moya said. "This week won't be as busy as last but it will still be important."
Elsewhere, shares of Disney rose more than 2%. The company is set to report quarterly results on Wednesday.
Meanwhile, Berkshire Hathaway Class A shares rose 1%. On Saturday, Warren Buffett's conglomerate reported its first-quarter results. The conglomerate showed operating earnings increased 12% in the first quarter, while its cash hoard topped $130 billion. Buffet personally discussed topics including the latest banking crisis that rocked Wall Street, at Berkshire Hathaway's annual meeting in Omaha, Nebraska.
Stocks are coming off a volatile week that saw the Dow Jones Industrial Average and S&P 500 notch their worst weekly stretches since March. The losses came despite a late-week rally that saw volatile regional bank stocks jump off their lows.