The broader market rose Tuesday as market participants looked to shake off a rough start to the month ahead of two key inflation reports due out later in the week. The S&P 500 Index rose nearly 0.5%, while the Dow Jones Industrial Average lost over 90 points and the Nasdaq Composite added 0.8%.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In Focus:
Federal Reserve policymakers will get one last look at the state of the U.S. economy in regards to inflation this week before September's Federal Open Market Committee next week, which could determine the size of its widely expected first interest rate cut since it raised rates 11 times since 2022.
On Wednesday, the Labor Department will release August's consumer price index (CPI) reading, which is expected to 0.2% on the month and 2.6% annually, and 0.2% and 3.2%, respectively, on a core basis. Then on Thursday, the Labor Department will report last month's producer price index (PPI), which is expected to increase by 0.2% for both the headline and core index readings.
"Inflation data has taken a backseat to labor market data in terms of influence on Fed policy," Citigroup economist Veronica Clark wrote in a note, quoted by CNBC. "But the markets -- and likely Fed officials themselves -- split on the appropriate size of the first rate cut on September 18, August CPI data could remain an important factor in the upcoming decision."
JPMorgan Chase
"There are a bunch of components that tell us that probably the number on expenses will be a bit higher than what is expected at the moment," Pinto said at a financial conference.
On the Earnings Front:
Oracle
For Wednesday:
All eyes will be on August's CPI report for more clues on the Fed's next moves.