Stocks encountered substantial volatility in Tuesday's trading session following an uninspiring performance the previous day. The major averages swung throughout the day, with the Nasdaq and S&P 500 closing in the green. The Nasdaq gained 52.68 points or 0.3% to reach 16,306.64, while the S&P 500 nudged up 7.52 points or 0.1% to end at 5,209.91. Meanwhile, the narrower Dow Jones closed slightly beneath its opening value, down by 9.13 points or under a tenth of a percent at 38,883.67.
This volatility on Wall Street comes as traders anticipate the release of the Labor Department's report on consumer price inflation due Wednesday. Economists predict consumer prices will have risen by 0.3% in March, following a 0.4% increase in February.
Prices for core consumer goods, excluding food and energy, are also likely to rise 0.3% in March after a 0.4% increase in February. The annual consumer price growth rate is expected to climb to 3.4% in March from February's 3.2%, whereas core consumer price growth rate is predicted to decrease slightly to 3.7%.
The inflation statistics could considerably impact interest rate forecasts, as Federal Reserve officials have previously stated they need to be confident inflation is easing before they consider reducing rates. Wednesday will also see the release of the Federal Reserve's most recent monetary policy meeting minutes, affording further insight into officials' views on rates.
Dan Coatsworth, investment analyst at AJ Bell, commented, "The central bank seeks sustained indications of declining inflation, which is currently not anticipated", warning investors to be ready for potential market turbulence.
In sector news, gold stocks rebounded significantly following Monday's decline, with the NYSE Arca Gold Bugs Index rising by 1.9% to a close to the annual peak. Gold's strength drove stocks upward, achieving a new record price. The biotechnology sector also thrived, with the NYSE Arca Biotechnology Index gaining 1.6%.
In foreign markets, Asian-Pacific trading experienced mixed results on Tuesday. The Nikkei 225 in Japan leapt 1.1% while South Korea's Kospi dropped 0.5%. European markets primarily gravitated downhill; the German DAX fell 1.3%, the French CAC 40 slid 0.9%, and the UK’s FTSE 100 slightly decreased by 0.1%.
The bond market saw treasury bonds regain groundwork after considerable dips in the last two sessions. The yield on the benchmark ten-year note, which moves inversely to its price, fell 5.6 basis points to 4.368%.
Wednesday's early trading is predicted to be dominated by consumer price inflation data releases, while the Federal Reserve's meeting minutes could trigger attention later in the day.
