US stocks wavered on Tuesday as investors geared up for a looming consumer inflation report seen as crucial to determining the size of the first US interest-rate cut in years.
The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) ticked up roughly 0.4% and 0.7%, respectively, while the Dow Jones Industrial Average (^DJI) fell about 0.2%.
The moves follow Monday’s sharp rebound, which saw the major gauges surge over 1% as investors went post-rout bargain hunting. Volatility is stalking the markets as investors waver between hopes for a hefty 0.5% rate cut from the Federal Reserve and worries about recession risks.
The countdown is on to the August consumer inflation reading on Wednesday, which could be decisive for rate-cut expectations after the monthly jobs report left the market guessing.
Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut
With the Fed’s policy decision just days away, investors are still unsure whether a 25- or 50-basis-point cut is on the way. The CPI update and Thursday’s wholesale inflation reading are the last two inflation inputs before policymakers meet on Sept. 17.
Meanwhile, Apple (AAPL) shares edged lower after the company lost an EU court battle over a $14 billion tax bill, a day after its iPhone 16 launch disappointed on the AI side. Elsewhere in techs, Oracle (ORCL) stock jumped around 10% in early after its earnings topped estimates, thanks to cloud services demand.
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