US Stocks Stall Before Key Inflation Data
London: 10 April 2024 (TraderMade): US stocks closed nearly flat on Tuesday, caught between anticipation of Wednesday's crucial Consumer Price Index (CPI) report and the kick-off of earnings season later this week.
Key Takeaways
- US stocks closed almost flat on Tuesday.
- Investors await Wednesday's CPI report for clues on inflation and interest rates.
- Financial stocks dipped ahead of earnings, while tech stocks rose.
- Alphabet's AI push propelled its stock to a record high.
Holding Pattern: Investors Eye Inflation and Earnings
Major indexes like the S&P 500 and Nasdaq managed slight gains, while the Dow Jones dipped marginally. Investors appear cautious, waiting on the CPI data to gauge the effectiveness of the Federal Reserve's inflation-fighting measures. A cooling inflation reading could signal a potential rate cut as soon as June, boosting stock prices.
Financial Slump, Tech Triumph
Financial sector stocks like JPMorgan Chase and Wells Fargo dragged the market down as they approached their quarterly earnings reports on Friday.
Conversely, the tech-heavy Nasdaq continued its three-day winning streak, fueled by Alphabet (Google's parent company) reaching a new all-time high on the back of its AI hardware announcement.
Nvidia Stumbles: Stock Enters Correction After Recent Highs
Chipmaker Nvidia is facing a downturn, with its stock price falling 10% from its all-time high. This downtrend puts the stock in "correction territory," a term for a significant price drop.
Looking Ahead
All eyes are on the upcoming CPI report. A positive reading could spark a rally if it indicates progress in controlling inflation. Additionally, major bank earnings reports later this week will provide further insights into corporate health and economic prospects.
