Stocks Fall Ahead Of Key Inflation Data, Gold Defends Record Highs; Bitcoin Stumbles Below $70,000: What's Driving Markets Tuesday?

Stocks edged lower during midday trading on Tuesday as traders maintained a cautious stance in anticipation of the highly awaited Consumer Price Index (CPI) report scheduled for Wednesday, which could offer crucial insights into the potential course of actions by the Fed.

The consensus expectation among Wall Street analysts is that the annual CPI rate to edge slightly higher from 3.2% to 3.4% in March, mainly due to rising gasoline prices. Core inflation, which excludes food and energy items, is anticipated to inch lower, from 3.8% to 3.7%.

The S&P 500 index declined by 0.2%, dragged down by financials, industrials, and energy stocks, while the tech sector remained flat. The Dow lost 0.4%, while small caps managed to inch 0.1% higher.

Treasury yields moved slightly lower amid rising demand for bonds, with the iShares 20+ Year Treasury Bond TLT rising by 0.8%.

Gold prices inched 0.2% higher to $2,343, after breaking fresh record highs earlier in the session.

Bitcoin BTC/USD witnessed heightened volatility, with the largest cryptocurrency declining by 4.6%.

Tuesday’s Performance In Major US Indices, ETFs

The SPDR S&P 500 ETF Trust SPY was down 0.2% to $517.42, the SPDR Dow Jones Industrial Average DIA was 0.3% lower at $387.75 and the tech-heavy Invesco QQQ Trust QQQ edged 0.1% lower to $440.24, according to Benzinga Pro data. 

Sector-wise, the Real Estate Select Sector SPDR Fund XLRE outperformed, up 0.7%, while the Financials Select Sector SPDR Fund XLF was the laggard, down 0.8%.

Tuesday’s Stock Movers

• Nvidia Corp. NVDA fell by 3%, putting it on track for its lowest close since early March and the third consecutive week of declines – the worst streak since September. ARK CEO Cathie Wood announced that she has sold nearly $4 million worth of Nvidia shares.
• Cisco Systems Inc. CSCO rallied 4% after Morgan Stanley raised the company’s price target to $58.
• Moderna Inc. MRNA surged over 5% following promising results from an early study of the company’s cancer vaccine mRNA-4157.
• MP Materials Corp. MP rallied nearly 8%, on the heels of a $58.5 million tax-credit award aimed at advancing the construction of its rare earth magnet manufacturing facility.
• Freeport-McMoRan Inc. FCX climbed 2.2% after Bank of America upgraded its outlook from Neutral to Buy. Similarly, peer company Hudbay Minerals Inc. HBM surged 8% following its upgrade from Neutral to Buy.

Read now: Bank Of America Sees Gold At $3,000, Warns Of A Copper Supply Crisis: Metals ‘Dance To Their Own Tune’

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