Stocks closed mixed yesterday with the S&P and Nasdaq in the red, while the Dow, the small-cap Russell 2000, and the mid-cap S&P 400 were all in the green.

Big-tech, which has catapulted the Nasdaq and S&P to new highs this year, weighed on those two indexes yesterday as profit-taking and possible rotation out of some chip names sent shares lower.

The S&P and Nasdaq are the big winners so far this year. But if we're seeing rotation out of big-tech for a while, that might give plenty of other deserving sectors a chance to shine.

Not much in the way of economic reports yesterday. All we got was the Dallas Fed Manufacturing Survey, which improved to -15.1 from last month's -19.4. Although, it missed the consensus calling for -14.0. The Production Index also improved to 0.7 from last month's -2.8.

Today, however, will be plenty busy with the Chicago Fed National Activity Index, the Case-Shiller Home Price Index, the FHFA House Price Index, Consumer Confidence, and the Richmond Fed Manufacturing Index.

We'll also hear from Fed policymakers Michelle Bowman and Lisa Cook, as they speak at their various engagements throughout the day.

Lots of economic reports on deck for this week.

But the main event will be Friday's Personal Consumption Expenditures (PCE) index (which is the Fed's preferred inflation gauge).

The better-than-expected CPI and PPI reports from two weeks ago, painted a picture of inflation starting to fall again.

After a lack of progress for a few months, and even a few steps back, some began to wonder if we'd get any rate cuts this year.

But the recent FOMC minutes confirmed the Fed is still expecting to cut this year, albeit just once rather than the 3 times they had expected earlier in the year.

But the Fed has maintained they will be data dependent. And Friday's inflation numbers will be another piece of data that will either support sooner-rather-than-later rate cuts, or augur against it.

Should be a busy week this week.

See you tomorrow,