Stocks Give Up Earlier Gains as traders await more inflation data
Stocks were negative Tuesday, reversing earlier gains, as investors digest the lighter than expected producer price index report and looked ahead toward the consumer price index data on Wednesday.
The Dow Jones Industrial Average inched down 71 points, or around 0.2%. The S&P 500 and the tech-heavy Nasdaq Composite fell 0.3% and 0.4%, respectively. The major averages gave back their early gains following the cool inflation data.
Big tech stocks wavered Tuesday, putting pressure on the S&P 500 and Nasdaq. Nvidia and Meta Platforms lost around 2% each, while Alphabet and Microsoft pulled back 0.1% each. Meanwhile, Tesla and Palantir rose around around 1% and 2%, respectively.
The producer price index, which measures wholesale inflation, increased just 0.2% in December, according to a Bureau of Labor Statistics report. Economists polled by Dow Jones had estimated a 0.4% rise. Core PPI, which excludes food and energy, was flat.
Investors are now looking to Wednesday’s consumer price index report to gauge whether the Federal Reserve is succeeding at bringing inflation close to its 2% target, which would allow the central bank to ease interest rate policy.
Source : CNBC
