Markets weakened on Tuesday as investors remained cautious ahead of the first report on the Consumer Price Index (CPI), while the Producer Price Index (PPI) data showed an unexpected cooling in wholesale prices. The S&P 500 index fell 0.3%, the technology exchange Nasdaq 100 weakened 0.4% and the Dow Jones Industrial Average lost 0.2%. The core PPI for December reached an average of 3.5%, which is less than the expected 3.8%, while the monthly value showed no change compared to the expected increase of 0.3%. The data helped ease immediate inflation concerns, but did not lead to sustained growth as markets remained focused on the first CPI reading. Shares of Eli Lilly fell 7% after the company forecast 2024 revenue below estimates, while reporting strong sales of its diet pills. Boeing continued its slide, losing 2.8% after the first of the fewest aircraft deliveries since the pandemic. The technology companies of the Magnificent Seven group as a whole recorded a decrease of 0.8%. On the foreign exchange market, the US dollar index fell by 0.3% after first hinting that Donald Trump's team is calling for a gradual increase in tariffs to curb inflation. US 10-year Treasury yields were flat and rose 2 basis points to 4.80%. Oil prices fell slightly by 0.5% in response to reports of possible progress in the Gaza peace talks. The crypto market showed resilience, with Bitcoin up 2% to $96,100 and Ethereum gaining 2.3% to $3,200. Investors are looking at CPI data, and the market is expected to see the most CPI-related volatility since March 2023. According to Citigroup's analysis, the market could move 1% in either direction. Banks such as JPMorgan Chase and Wells Fargo begin the results session by investing in exchange for the trends of certain annual income. In the technology sector, AMD is under pressure, trading 50% below its 2023 highs, with analysts expressing concerns about growth linked to artificial intelligence. Meanwhile, Hershey shares hit a 52-week low on rising cocoa prices and worries about consumer spending. The market is in a frenzy, as investors are looking for clearer signals about the inflation trend and their impact on the Federal Reserve System's policy. Current data suggest that the Fed could maintain a cautious approach to rate cuts in the near future. !–cleared–>
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