US Stock Markets Open Mixed
US stock markets opened with mixed movements on Tuesday. Investors are closely watching the release of a significant inflation report that will shape future Federal Reserve policy. The S&P 500 gained approximately 0.4%, while the Nasdaq Composite added 0.7%. In contrast, the Dow Jones Industrial Average slipped by 0.2%.
Monday’s rally, which pushed all three major indexes up by over 1%, brought some optimism. Yet, volatility remains in play. Traders are torn between hopes for a sharp Federal Reserve rate cut and concerns over a potential recession.
US Stock Markets Open Mixed – Inflation Report Takes Center Stage
The August Consumer Price Index (CPI) report, expected on Wednesday, is seen as crucial for determining the Fed’s next move. Market participants are divided on whether the central bank will opt for a 25 or 50 basis point rate cut. The CPI data, along with the upcoming wholesale inflation numbers due Thursday, will be key factors guiding this decision.
With the Federal Reserve’s meeting set for September 17, this week’s inflation readings may tip the scale. The labor market data released last week failed to provide clear direction. As a result, traders are awaiting more decisive indicators.
Apple Faces Setback After EU Court Loss
Meanwhile, Apple shares edged lower, retreating after an EU court ruled against the company in a tax dispute. Apple now faces a $14 billion tax bill, which overshadowed its recent iPhone 16 launch. Investors had been hoping for stronger AI-related advancements in the new model, adding to the disappointment.
Despite the tech giant’s struggles, the overall technology sector showed resilience. Notably, Oracle saw its stock jump by 10% after beating earnings estimates. The company credited strong demand for its cloud services, which continues to boost its performance.
Investors Weigh Rate Cut and Recession Risks
The mixed US stock markets’ movements reflect the uncertainty surrounding the Federal Reserve’s next steps. Investors are looking for signs that inflation is cooling off, which could encourage a more aggressive rate cut. However, concerns about a possible recession continue to cast a shadow.
With the Fed’s policy meeting fast approaching, the inflation data to be released this week will play a pivotal role in shaping investor sentiment. Until then, markets are likely to remain volatile.
Chart by Trading View
