Stocks Mixed, Tech Slides As Investor Caution Prevails Ahead of CPI Report: What's Driving Markets Tuesday?

The picture on Wall Street is mixed Tuesday as the broader S&P 500 index experiences a slight dip, primarily due to tech’s lackluster performance. In contrast, small-cap and blue-chip stocks are edging higher. The tech sector is eagerly anticipating upcoming product releases, notably Apple Inc. (NASDAQ:AAPL)’s impending unveiling of the iPhone 15. Other sectors are treading cautiously ahead of the release of August inflation data, scheduled for Wednesday.

Economists are forecasting an annual inflation rate increase from 3.2% to 3.6%, with core inflation (excluding energy and food) expected to drop from 4.7% to 4.3%. This data holds significant implications for market expectations regarding Federal Reserve interest rates, especially with the FOMC meeting just one week away.

Cues From Tuesday’s Trading:

The S&P 500 is down 0.2%, while the tech-heavy Nasdaq 100 slipped 0.7%. Both the Dow Jones Industrial Average and the Russell 2000 edged 0.3% higher.

US Index Performance On Monday

Thursday’s Trading In Major US Equity ETFs

• The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.2% lower to $447.41.
• The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) rose 0.2% to $348.22.
• The Invesco QQQ Trust (NASDAQ:QQQ) gained 0.55% to $374.54, according to Benzinga Pro data.

Looking at S&P 500 sectors:

• The Energy Select Sector SPDR Fund (NYSE:XLE) led gains, up 2.2% for the day. The Financial Select Sector SPDR Fund (NYSE:XLF) was also positive, up 1%.
• The Technology Select Sector SPDR Fund (NYSE:XLK) was the main laggard, down 1.3%.

See also: Futures Vs. Options

Stocks In Focus:

• Oracle fell over 12% after the database giant’s guidance fell short of expectations.
• Apple shares are in focus ahead of its “Wonderlust” iPhone launch event.
• Tesla Inc. (NASDAQ:TSLA) fell about 1.2% following the stock’s 10%-plus gain on Monday.
• Qualcomm Inc. (NASDAQ:QCOM) saw a 1.5% increase, building on the previous day’s upward momentum driven by the 5G chip contract it secured with Apple.

Commodities, Bonds, Other Global Equity Markets:

Crude oil rose 1.9%, with a barrel of WTI-grade crude trading at $88. The United States Oil Fund ETF (NYSE:USO) was 1.8% higher to $79.79.   

Treasury yields were flat, with the 10-year yield at 4.28% and the two-year yield at 5.01%. The iShares 20+ Year Treasury Bond ETF (NYSE:TLT) was 0.1% higher for the day. 

The dollar rose, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), up 0.2%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), was 0.3% lower to 1.0722.

European equity indices closed broadly in the red, excluding the UK. The SPDR DJ Euro STOXX 50 ETF  (NYSE:FEZ) fell 0.6%. 

Gold edged 0.5% down to $1,911/oz, while silver held steady at $23.07. Bitcoin (CRYPTO: BTC) was 3.8% higher to $26,110.

Staff writer Piero Cingari updated this report midday Tuesday. 

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