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U.S. stocks fell on Tuesday, weighed on by the financial sector ahead of important earnings releases later this week. Market participants also expressed caution on the eve of the latest consumer inflation data.
Wall Street’s three major stock averages are It was green, but it quickly reversed course. The Nasdaq Composite Index, which has a high proportion of high-tech stocks (Comp:IND) was the last 0.17% drop The benchmark S&P 500 rose to 16,225.73 points in afternoon trading.SP500) was 0.32% decrease Up to 5,185.89 points. Blue-chip stock Dow (DJI) 0.34% decrease Up to 38,761.21 points.
Seven of the S&P’s 11 sectors were in the red. Financial stocks were the biggest decliners on Friday, outperforming quarterly data from big names such as JPMorgan (JPM), Wells Fargo (WFC), and Citi (C).
Wednesday’s Consumer Price Index (CPI) report will be closely watched by investors for further clues about the future of monetary policy. The CPI has exceeded expectations over the past two months, and concerns about continued high inflation are weighing on sentiment. Additionally, stronger-than-expected labor market cues led traders to dial back interest rate cut expectations last week, resulting in the S&P 500’s (SP500) worst weekly performance of the year.
The economic calendar was mostly blank on Tuesday, but one indicator on record turned out to be slightly more significant. Small business optimism hit its lowest level in March since December 2012, according to the National Federation of Independent Business, and inflation is once again being reported on Main Street as the biggest problem for businesses.
“Although upward price pressures and availability of quality labor were the main issues facing small businesses in March, inflation has surged back to being a top concern for most small businesses. , the net share of small business owners who raised prices jumped to 28% from a year earlier, at 21%, the highest share since October 2023, said Wells Fargo’s Sam Bullard.
“Employment remains a challenge for SMEs as the labor market remains strong despite rising interest rates. SMEs’ hiring appetite continued to decline in March, with companies facing rising interest rates. We expect this trend to continue as long as we have to fight it.”This downward trend suggests that the labor market may start to lose momentum in the coming months,” Bullard added.
Turning to the bond market, US Treasury yields have fallen. Also in focus was the $58 billion three-year bond auction, which followed with a 4 basis point difference. The long-term 30-year bond yield (US30Y) fell 5 basis points to 4.50%, and the 10-year bond yield (US10Y) fell 6 basis points to 4.37%. The interest rate-sensitive short-term two-year bond yield (US2Y) fell by 4 basis points to 4.75%.
See live data on how Treasury yields are moving across the curve on the Seeking Alpha Fixed Income page.
Looking at active stocks, Moderna (MRNA) was the top gainer in the S&P 500 (SP500). The vaccine maker announced positive data from an early-stage study evaluating Keytruda as an investigational candidate for the treatment of head and neck cancer.
Boeing (BA) said the top aircraft maker saw March aircraft deliveries drop by 55% compared to a year earlier amid production caps and intense regulatory scrutiny following an accident in early January in which a door plug on an Alaska Airlines (ALK) flight flew off. The decline came after it was revealed that the stock had declined by 20%.
Norfolk Southern Railway (NSC) benefited after the railroad operator reached a $600 million settlement over the February 2023 freight train derailment in East Palestine, Ohio.
