US stocks closed mixed in a rollercoaster session on Tuesday as investors geared up for a looming consumer inflation report seen as crucial to determining the size of the first US interest-rate cut in years.
The benchmark S&P 500 (^GSPC) reversed earlier losses to finish the day about 0.5% higher. The tech-heavy Nasdaq Composite (^IXIC) did the same, closing up roughly 0.9%. The Dow Jones Industrial Average (^DJI) recovered from steeper losses but still closed down 0.2%, or around 80 points.
JPMorgan Chase (JPM) weighed on the Dow after the bank warned Tuesday that forecasts for net interest income (NII), or the difference between the revenue generated on loans and paid out on deposits, were too high. Shares of the big bank dropped around 5%.
It was also a down day for oil with prices sinking after oil alliance OPEC lowered its demand growth forecast in 2024 and 2025. West Texas Intermediate (CL=F) slid more than 3% to hover near $66 per barrel. Brent (BZ=F) also fell to trade below $70 per barrel, settling at its lowest level since December 2021.
The volatile moves follow Monday's sharp rebound, which saw the major gauges surge over 1% as investors went post-rout bargain hunting. Volatility is stalking the markets as investors waver between hopes for a hefty 0.5% rate cut from the Federal Reserve and worries about recession risks.
August's consumer inflation reading on Wednesday should provide some clues after the monthly jobs report left the market guessing on just how much the central bank will cut rates.
The CPI update and Thursday's wholesale inflation reading are the last two inflation inputs before policymakers meet on Sept. 17. But that won't be the only things markets will have to digest this week with Donald Trump and Kamala Harris set to face off in their first presidential debate Tuesday evening.
Meanwhile, Apple (AAPL) shares edged lower after the company lost an EU court battle over a $14 billion tax bill, a day after its iPhone 16 launch disappointed on the AI side. Elsewhere in techs, Oracle (ORCL) stock jumped more than 10% after its earnings topped estimates, thanks to cloud services demand. – Yahoo Finance