Stock market today: Indexes edge up as oil prices ease and traders look to key inflation data
Stock markets opened higher on Tuesday as oil prices dipped, helping investors recover slightly after Monday’s losing session.
International crude prices fell 3%, with Brent down to $78.50 a barrel. US oil prices were also down 3% to $74.77 a barrel.
Traders also appeared to shrug off the sluggishness in Chinese stocks. Though the country’s soaring equities have recently stolen the spotlight, the rally stumbled on Tuesday after Beijing failed to announce fresh stimulus as many observers had been expecting.
Instead, Wall Street is largely focused on earnings and upcoming inflation data, scheduled for release on Thursday. September’s consumer price index has regained the spotlight as a factor that could determine whether the Federal Reserve can continue to cut interest rates this year after last month’s jobs report was much stronger than expected.
Economists project consumer inflation for September to come in at 2.3% year-over-year, down from 2.5% in August.
However, any upside surprise could trigger stock volatility this week, as it could indicate the Fed may have to keep interest rates higher for longer, says Bank of America.
Meanwhile, Tuesday marked the of the earnings season, kicking with PepsiCo. Shares in the beverage firm fell as the company cut its full-year guidance. Major US financial firms including JPMorgan, Wells Fargo, and BlackRock report on Friday.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 5,716.40, up 0.36%
- Dow Jones Industrial Average: 41,915.00, down 0.1% (-42.74 points)
- Nasdaq composite: 18,016.89, up 0.51%
Here’s what else is going on:
- Goldman Sachs is betting that the Chinese equity rally could run up another 20%.
- The Fed won’t cut any more this year as the ‘phantom recession’ is finally dead, Ed Yardeni says.
- A Tesla trader turned $65,000 into $306 million before losing it all, according to a lawsuit.
In commodities, bonds, and crypto:
- West Texas Intermediate crude slid 3% to $74.77 a barrel. Brent crude, the international benchmark, fell 3% to $78.50 a barrel
- Gold was essentially flat at $2,665.5 an ounce.
- The 10-year Treasury yield rose by two basis points at 4.053%.
- Bitcoin fell 1.44% to $62,384.53.
