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. 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 SPY was 0.2% lower to $447.41.
• The SPDR Dow Jones Industrial Average ETF DIA rose 0.2% to $348.22.
• The Invesco QQQ Trust QQQ gained 0.55% to $374.54, according to Benzinga Pro data.

Looking at S&P 500 sectors:

• The Energy Select Sector SPDR Fund XLE led gains, up 2.2% for the day. The Financial Select Sector SPDR Fund XLF was also positive, up 1%.
• The Technology Select Sector SPDR Fund 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. TSLA fell about 1.2% following the stock’s 10%-plus gain on Monday.
• Qualcomm Inc. 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 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 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 UUP, up 0.2%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust 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  FEZ fell 0.6%. 

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

Staff writer Piero Cingari updated this report midday Tuesday. 

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