Inflation fears hit Wall Street
U.S. stocks closed lower on Tuesday as investors braced for the release of a critical inflation report that could influence the Federal Reserve’s next move on interest rates. The session extended losses from earlier in the week, with all three major indexes ending in the red as reported by CNBC.
The Dow Jones Industrial Average fell 0.35% to 44,247.83, marking its fourth consecutive decline. The S&P 500 dropped 0.3% to 6,034.91, while the Nasdaq Composite slipped 0.25% to 19,687.24, as traders adjusted positions ahead of the consumer price index (CPI) data set to be published Wednesday.
"[The market] has been narrowing over the past week. Investors are waiting to see if that simply is your traditional seasonal softness in mid-December, and I think [they] are expecting the participation to broaden out once again as the market does indeed go through an end-of-year pop,” said Sam Stovall, chief investment strategist at CFRA Research.
Oracle shares took a hit, falling 6.7% after the company reported fiscal second-quarter results that fell short of analysts' expectations. Despite the setback, Oracle shares remain up 68% for the year.
Alphabet emerged as a standout performer, with its shares climbing 5.6% after the company announced a major breakthrough in quantum computing. The new chip unveiled by Google added to Alphabet’s year-to-date gains, now exceeding 32%.
Nvidia continued to struggle, falling more than 2% after a Chinese regulator revealed an investigation into potential antimonopoly violations by the company. Meta Platforms, which also saw losses at the start of the week, rebounded with a modest 1% gain on Tuesday.
The upcoming CPI report is expected to play a pivotal role in shaping market sentiment.
Economists polled by Dow Jones forecast a 0.3% increase in November's inflation and a 2.7% year-over-year rise. The Federal Reserve will consider the data at its meeting scheduled for December 17-18, where further policy decisions on interest rates are anticipated.
