Jamie Spencer
US stocks showed a mixed performance on Tuesday as investors treaded cautiously ahead of a key consumer inflation report expected on Wednesday, which could shape the Federal Reserve’s interest rate trajectory.
Index Performance
- Dow Jones Industrial Average (^DJI): Slightly in the red, hovering near the flat line.
- S&P 500 (^GSPC): Up about 0.2%.
- Nasdaq Composite (^IXIC): Rose almost 0.6%, buoyed by gains in tech stocks.
Despite slight dips earlier this week, all three indices remain close to record highs as investors pin their hopes on inflation data signaling a continued “soft landing” for the US economy. This would reinforce expectations of a Federal Reserve rate cut in December.
Notable Stock Movements
Winners
- Alphabet (GOOG, GOOGL): Shares surged over 4%, leading the Nasdaq’s gains. The rally followed Google’s announcement of advancements in quantum computing, including progress with its new Willow quantum chip.
Losers
- Oracle (ORCL): Fell about 8% after reporting disappointing quarterly revenue, reflecting stiff competition in the cloud computing market.
- Taiwan Semiconductor Manufacturing Co. (TSM): Dropped roughly 1%. Despite a 34% year-on-year revenue jump in November, the number represented a decline compared to the previous month, raising questions about the sustainability of AI-driven demand.
Investor Sentiment
Wall Street remains focused on Wednesday’s Consumer Price Index (CPI) report. A favorable inflation reading could bolster the case for a Federal Reserve interest rate cut in December, a scenario that markets have been eagerly anticipating.
In the meantime, investors continue to assess individual corporate developments, including sector-specific challenges like competition in cloud services and evolving demand in semiconductor markets.
