Stocks opened mixed on Wall Street on Tuesday following the latest update on inflation, with the S&P 500 rising 0.1% and the Dow slipping 20 points. The Nasdaq composite also rose 0.2%, slightly below its all-time high set last week.
The highly anticipated inflation report revealed that prices paid by U.S. consumers last month rose slightly more than economists expected. This news kept hopes of a Federal Reserve interest rate cut next week at bay.
Oracle saw a sharp increase in its stock price after reporting better-than-expected results, while Southwest Airlines sank after announcing a reduction in capacity due to fewer aircraft deliveries from Boeing.
In early trading, futures for the S&P 500 gained 0.2% and futures for the Dow Jones Industrial Average were down less than 0.1%. The report on U.S. consumer prices could show inflation remaining at 3.1% in February, according to economists’ forecasts.
Fed Chair Jerome Powell recently stated that the Fed is close to having enough confidence in inflation to begin cutting rates. The general expectation among traders is that the Fed will start cutting rates in June, which has buoyed prices for equities.
In Europe, Germany’s DAX picked up 0.4% and Britain’s FTSE 100 rallied 0.8%, while the CAC 40 in Paris remained unchanged. In Asia, Japan’s Nikkei 225 lost less than 0.1%, and Chinese markets were mixed.
Bitcoin, which rallied to a record high above $72,700 on Monday, was trading at about $71,886 early Tuesday. U.S. benchmark crude oil was up 22 cents at $78.15 per barrel, while Brent crude added 32 cents to $82.53 per barrel.
Overall, the mixed opening on Wall Street reflects the uncertainty surrounding inflation and its potential impact on the Federal Reserve’s interest rate decisions in the coming months.
