In early trading on Tuesday, stocks experienced a modest upswing; however, a downward pressure has since been exerted on the market. The benchmark indices retracted from their session highs, dipping into the negative zone.
As per the latest market data, major averages are off their lowest points of the day, but are still in the negative. The Dow Jones Industrial Average has taken a downturn of 192.62 points or 0.5 percent, settling at 38,700.18. Nasdaq has declined by 51.84 points or 0.3 percent to stand at 16,202.11. The S&P 500 Index has plummeted 22.39 points or 0.4 percent, coming in at 5,180.00.
This bearish trend on Wall Street has unfolded as traders anticipate the key consumer and producer inflation data set for release on Wednesday and Thursday. Market analysts predict a 0.3 percent rise in consumer prices this March, compared to a 0.4 percent increase in February.
Core consumer prices, excluding food and energy, are expected to increase by 0.3 percent this March, down from the 0.4 percent rise in February. Predictions note a slight acceleration in annual consumer price growth to 3.4 percent this March from February's 3.2 percent. Annual core consumer price growth is expected to decelerate to 3.7 percent from 3.8 percent.
Producer prices are speculated to go up by 0.3 percent in March, which is a decrease from the 0.6 percent increase in February. The annual rate of producer growth is projected to leap to 2.3 percent from 1.6 percent.
The inflation figures are likely to strongly influence interest rates forecasts. Federal Reserve officials have consistently emphasized the need for proof of flattening inflation before contemplating rate cuts. The forthcoming release of the minutes of the Fed's latest monetary policy meeting on Wednesday could provide further insight into their rate strategy.
Amidst all this, the computer hardware sector took a hit, with the NYSE Arca Computer Hardware Index dropping by 1.4 percent. There were also losses in pharmaceutical and energy stocks; however, gold stocks have shown promising strength in light of the rising price of the precious metal.
International trading revealed a mixed showing for Asia-Pacific region stock markets at close on Tuesday. Japan's Nikkei 225 Index soared by 1.1 percent, while South Korea's Kospi receded by 0.5 percent.
In contrast, the major European markets were predominantly bearish. The German DAX Index experienced a substantial fall of 1.3 percent, the French CAC 40 Index slid down by 0.9 percent, and the UK's FTSE 100 Index dropped by 0.1 percent.
The bond market witnessed a recovery in Treasuries after a noticeable decline over the two most recent sessions. Consequently, the yield on the ten-year note dropped by 5.2 basis points, landing at 4.372 percent, moving inversely to its price.
