Stocks Finish Mixed Amid Volatility
US stocks finish mixed on Tuesday. Investors braced for crucial inflation data expected later this week. The benchmark S&P 500 reversed earlier losses, rising 0.5%. Similarly, the tech-heavy Nasdaq Composite gained 0.9%. However, the Dow Jones Industrial Average remained in negative territory, slipping 0.2%, or roughly 80 points.
JPMorgan Chase weighed heavily on the Dow. The bank’s shares fell 5% after warning that net interest income forecasts were too optimistic.
Oil Prices Plunge on OPEC Forecasts
Oil prices saw a sharp decline during the session. OPEC’s downward revision of demand growth forecasts for 2024 and 2025 pressured energy stocks. West Texas Intermediate dropped more than 3%, hovering near $66 per barrel. Brent crude settled below $70, its lowest level since December 2021.
This decline in oil prices followed a strong rally on Monday, where investors engaged in bargain hunting after a steep market rout.
Inflation Data Anticipated
Investors are awaiting Wednesday’s consumer inflation report. This data is seen as pivotal for determining the size of a potential Federal Reserve interest-rate cut. Volatility has gripped the market, as traders balance hopes for a significant 0.5% rate cut with recession fears.
Thursday’s wholesale inflation report will also be closely watched. These two readings are the final pieces of inflation data before the Fed’s next meeting on September 17.
Tech Stocks See Mixed Results
Apple shares edged lower. The company faced a legal setback, losing an EU court case over a $14 billion tax bill. This followed a lukewarm response to the iPhone 16 launch, particularly regarding AI features.
On the flip side, Oracle stock surged more than 10%. The company exceeded earnings expectations, fueled by strong demand for cloud services.
Political Developments Add to Uncertainty
Investors are also keeping an eye on the political landscape. On Tuesday evening, former President Donald Trump and Vice President Kamala Harris will meet in their first presidential debate. This event is adding further uncertainty to the market outlook.
US Stocks Finish Mixed
In summary, US stocks finish mixed performance on Tuesday. Investors are preparing for crucial inflation data, which could influence the Fed’s next rate decision. Oil prices plummeted, and tech stocks had a varied session.
Chart by Trading View
