US stock indexes fell on Tuesday as investors watched earnings reports and economic data ahead of inflation figures due later in the week.
The The S&P 500 fell 0.4%., a day after the broad index ended with modest losses. The Dow Jones Industrial Average was down 0.1% while the high-tech Nasdaq Composite was down 1.4%.
Investors are waiting for consumer price data on Wednesday that may set expectations for how the Federal Reserve will handle monetary policy at its upcoming meetings. In recent weeks, better-than-expected corporate earnings and strong labor market data eased fears about an impending recession in the United States, helping stock markets rebound from their lows.
With inflation at multi-decade highs, investors say Wednesday’s CPI update will be key to rates and market direction expectations.
“The market has enjoyed a risk environment since its lows in mid-June, and investors interpreted Chair Powell as more pessimistic than he had hoped at the last Fed meeting,” said Quincy Crosby, chief global strategist at LPL Financial. “But today’s market is tomorrow’s market – Wednesday’s inflation data will provide a clearer picture of whether this bear market is really behind us.”
According to Ms. Crosby, inflation is the market’s number one concern, including not only whether it will subside, but also how quickly.
Earnings season is about to end, although some major companies are still ready to report the numbers. RobloxAnd the Queen Piece global and Win Resorts Results will be released after the markets close. Chip maker Micron fell 5% Tuesday after that Issuance of revenue warningJust one day later
progress Similar initial instructions.
Norwegian Cruise Line Holdings
It fell 12% after reporting a wider-than-expected quarterly loss. Shares in the Peer Journeys line
It fell 6.7% as pockets of the travel sector struggle to recover from pandemic lows.
Energy stocks rose 2.2% in the morning session, with Brent crude prices rising 1.2% to $97.79 a barrel after that. Moscow cut off the flow of oil through a pipeline to Europe. shares
led the sector, up 5.4% on the news Monday from Warren Buffett Berkshire Hathaway took its stake in the company exceeded the 20% mark.
Traders worked on the trading floor at the New York Stock Exchange on Monday.
picture:
Andrew Kelly/Reuters
The data released on Tuesday showed US labor productivity fell for the second consecutive quarter While labor costs were higher than economists had expected.
The yield on the benchmark 10-year US Treasury rose to 2.877% from 2.763% on Monday, while the two-year yield rose to 3.247% from 3.214%. With short-term returns much higher than long-term returns, the yield curve remains inverted, a leading indicator of stagnation.
Abroad, the Stoxx Europe 600 Index fell 0.6%, with losses led by travel and technology companies. Among individual companies, asset manager
It fell 4.5% after saying it turned into a loss in the first half.
In Asia, stock markets were mixed. In Japan, the Nikkei 225 is down 0.9% while China’s Shanghai Composite is up 0.3%. In Hong Kong, the Hang Seng weakened 0.2%.
Write to Will Horner at [email protected] and Eric Wallerstein at [email protected]
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