NEW YORK (AP) — Stocks fell on Wall Street on Tuesday ahead of several key inflation measures due this week and the Federal Reserve’s latest interest rate decision.
The S&P 500 was down 0.2%, with about 80% of the stocks in the benchmark index falling. As of 11:11 a.m. ET, the Dow Jones Industrial Average was down 195 points, or 0.5%, while the Nasdaq was up 0.1%. Trading was sluggish after both the S&P 500 and Nasdaq posted record volume.
There was little corporate or economic news for investors to focus on. General Motors Co. shares rose 2.1% after the company said its board had authorized $6 billion in share buybacks.
Bank stocks were heavily weighted in the market, with Fifth Third Bancorp falling 2% after it cut its earnings growth outlook.
Apple rose 5.4%, offsetting losses elsewhere in the technology sector, as the company gained momentum after highlighting its efforts in artificial intelligence technology.
In the bond market, government bond yields fell. The yield on the 10-year Treasury note fell to 4.45% from Monday’s close of 4.47%.
The main focus this week will be on Wednesday, when the US releases its latest data on consumer-level inflation and the Federal Reserve releases its latest data on interest rates. The US is also due to release its latest data on wholesale prices on Thursday.
Wall Street expects the government’s Consumer Price Index to remain unchanged at 3.4% in May. Inflation as measured by the CPI appears to be hovering around 3%, down significantly from a peak of 9.1% in 2022. That makes it harder for the Fed to achieve its goal of pushing inflation back to its 2% target.
The Fed has kept its key interest rate steady at its highest level in more than two decades, and Wall Street expects one or two rate cuts this year. Few expect the rate to move when it meets, which start on Tuesday. Policymakers are due to release their latest forecasts for interest rates and the economy on Wednesday.
When Fed officials last released their forecasts in March, they suggested a typical member expected roughly three rate cuts in 2024. That forecast will almost certainly be lower this time around.
Recent economic data has been mixed, with traders hoping for a moderate slowdown without a recession. A slower economy could ease inflationary pressures and prompt the Fed to cut interest rates. Lower interest rates could help boost overall stock market growth. However, despite concerns about rising inflation and high interest rates, major stock indexes are hitting record highs.
The economy is thriving, buoyed by a strong job market and consumer spending. Consumers, especially those on lower incomes, are feeling more stressed, and retailers are warning investors about the potential impact on revenue and income. The U.S. job market is showing signs of cooling, which could ease inflation but increase consumer stress.
European stocks fell and Asian shares were mixed.
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Associated Press writers Jimo Zhong and Matt Ott contributed to this report.
