Investing.com – US stocks were little changed Tuesday, with the recent rally pausing ahead of the release of key inflation data.
At 09:55 ET (14:55 GMT), the fell 165 points, or 0.4%, while the index traded largely flat and the gained 92 points, or 0.5%.
CPI data awaited for more rate cues
The focus this week is squarely on US inflation data, due on Wednesday, which could influence the Federal Reserve at its monetary policy meeting later this month.
is expected to increase slightly to 2.7% from 2.6% year-on-year, while , which excludes volatile food and energy items, is expected to remain at 3.3%.
While inflation had fallen steadily earlier in 2024, it turned more sticky in recent months amid resilience in the US economy, sparking some uncertainty over the outlook for interest rates.
Markets are still holding out for a by the Federal Reserve next week. But the longer-term outlook for rates has now turned more uncertain, with expectations of inflationary policies under incoming President Donald Trump adding to the mix.
Oracle pressures tech sector
The technology sector remained in the spotlight Tuesday, after losses during the previous sector on the back of Nvidia (NASDAQ:) suffering from reports that China was probing the firm over antitrust concerns.
Oracle (NYSE:) tumbled over 8% iafter the cloud firm’s quarterly earnings missed lofty street estimates, amid increased competition in the sector.
Among other movers, MongoDB (NASDAQ:) stock fell 10% despite the software company raising its forecast for annual results, while C3.ai (NYSE:) dropped 7%.
Elsewhere, Eli Lilly (NYSE:) stock rose after the drugmaker announced a new $15 billion share buyback and hiked its dividend.
Alaska Air (NYSE:) stock rose 14% after the carrier raised its fourth-quarter profit forecast, owing to robust travel demand and improved pricing.
Oil hands back gains
Crude prices steadied Tuesday after the previous session’s healthy gains, as traders assessed the turmoil in the Middle East as well as the Chinese economic outlook.
By 09:55 ET, the US crude futures (WTI) traded flat at $68.38 a barrel, while the Brent contract dropped 0.1% to $72.08 a barrel.
Oil prices rose over 1% on Monday, boosted by China’s top political body raising hopes for more stimulus measures as well as heightened geopolitical tensions in Syria.
However, concerns have since eased about the fallout from Syrian President Bashar al-Assad’s overthrow, with Syria’s rebels working to form a government and restore order.
Turning back to China, the country’s Central Economic Work Conference, which is set to begin on Wednesday, is now expected to provide more insight into planned stimulus after Beijing said it will “vigorously” support local consumption at the start of the week.
(Ambar Warrick contribued to this article.)
