US stocks struggled to maintain gains on Tuesday as investors awaited the release of a key inflation report that could impact the future trajectory of interest rates. The Dow Jones Industrial Average led the downward trend, falling by 0.3% in mid-afternoon trading, while the S&P 500 and Nasdaq Composite also dipped slightly.
Investors are skeptical about the Federal Reserve’s projected three rate cuts for the year, given the strong performance of the US economy. The upcoming Consumer Price Index report is seen as a turning point, with any indication of cooling inflation potentially leading to a policy shift in June.
Rising Treasury yields and concerns about inflation sparked by climbing metals prices have added to the uncertainty in the market. The start of the first quarter earnings season on Friday will also provide insight into the health of the economy and individual companies.
In other news, Boeing shares fell following reports of safety concerns raised by a whistleblower, while stocks like Nvidia, Moderna, and Alphabet experienced notable movements in afternoon trading. The debate about oil prices reaching $100 a barrel continues, alongside discussions of a potential economic slowdown and recession risks for certain states. Overall, the market remains cautious as it navigates through various economic indicators and corporate developments.