S&P 500 Closes flat ahead of it’s busiest CPI day – US Market Wrap
Stocks swung around all day, with traders hesitant to make any substantial wagers as they awaited critical inflation data for hints on the future of Federal Reserve rates in the coming months.
After multiple twists and turns in the run-up to the consumer price index, the S&P 500 finished 0.1% higher. While the majority of its shares rose, big tech once again faced pressure. Options traders expect the US equities benchmark’s busiest CPI day since March 2023. According to Citigroup’s Stuart Kaiser, the index is likely to move 1% in either direction on January 15 based on the cost of at-the-money options and calls.
According to data released on Tuesday, the producer price index surprisingly fell in December, aided by lower food costs and flat service prices. However, several of its components, which feed into the Fed’s preferred inflation indicator, personal consumption expenditures, were mixed in December.
The yield on 10-year Treasuries remained stable at 4.78%. The dollar fell after news reported that Trump’s incoming economic team is exploring modest tariff increases to help minimise inflationary pressures.
Oil prices fell from a five-month high after Hamas and Israel reportedly agreed to a cease-fire, moderating a surge fuelled by concerns about Russian and Iranian supplies.
