U.S. stocks end mixed ahead of inflation data

On Tuesday, U.S. stocks closed with mixed results as traders awaited the release of important U.S. inflation data. The Dow Jones Industrial Average decreased by 9.13 points, or 0.02 percent, to 38,883.67. The S&P 500, on the other hand, rose by 7.52 points, or 0.14 percent, to 5,209.91. The Nasdaq Composite Index also saw an increase of 52.68 points, or 0.32 percent, reaching 16,306.64.

Of the 11 primary S&P 500 sectors, nine ended in positive territory, with real estate and utilities leading the gainers by increasing by 1.29 percent and 0.55 percent, respectively. Conversely, financials and industrials were the biggest losers, dropping by 0.50 percent and 0.22 percent, respectively.

Investors were keeping a close eye on the upcoming consumer price index (CPI) report set to be released on Wednesday as they adjusted their expectations for potential interest rate cuts by the Federal Reserve. This follows strong economic indicators, including last Friday’s robust employment report.

Analysts noted that inflation is gradually moving closer to the Federal Reserve’s target of 2 percent. However, a report from the National Federation of Independent Business revealed that small business confidence hit an 11-year low in March, with inflation being a major concern.

In addition, financial giants like JPMorgan Chase & Co., Wells Fargo & Co., and Citigroup Inc. are preparing to announce their quarterly earnings on Friday. According to Bill Northey, senior investment director at U.S. Bank Wealth Management in Billings, Montana, the stock market is currently in a holding pattern awaiting key economic data points.

Northey emphasized the significance of the financial sector’s performance in setting the tone for the first-quarter reporting season. He indicated a focus on cyclical areas as a barometer of corporate America’s health. Despite the pause in trading, equity markets remain close to record highs.