US stocks were stuck in a holding pattern on Tuesday as investors eagerly awaited a key inflation report that could provide insight into the future path of interest rates. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 were all trading just below the flatline, indicating a sense of caution among traders.
The upcoming release of the Consumer Price Index on Wednesday has put the market on edge, with many viewing it as a crucial moment for determining the next direction of the stock market. Investors are becoming less convinced that the Federal Reserve will follow through on its projected three rate cuts for the year, especially as the US economy continues to show strength.
The focus on the CPI print for March has intensified, with any signs of cooling inflation potentially leading to a policy shift in June. Additionally, the rise in the 10-year Treasury yield to near five-month highs has raised concerns among investors, with the 5% level seen as a key point of worry.
Rising metals prices, including copper and gold, have also sparked inflation concerns, adding to the uncertainty in the market. The start of first-quarter earnings season on Friday with companies like Citigroup, JPMorgan, and Wells Fargo reporting results is another catalyst that investors are keeping an eye on.
Overall, the market remains in a state of flux as investors await key economic data and earnings reports to provide clarity on the future direction of US stocks.
