**Market Update: Mixed Performance for Major U.S. Stock Indexes**
**U.S. Market Overview**
In early trading on Tuesday, the major U.S. stock indexes experienced a decline, but this trend shifted as the session progressed, with the indexes displaying mixed performances by midday. The tech-heavy Nasdaq rebounded from its initial lows and moved into positive territory, whereas the Dow Jones Industrial Average and the S&P 500 Index remained negative.
The Nasdaq notably reached a new intraday high, currently up by 38.36 points or 0.2%, settling at 17,230.89. Conversely, the S&P 500 has dropped by 10.73 points or 0.2%, to 5,350.06, and the Dow is down by 262.29 points or 0.7%, resting at 38,605.75.
This varied performance among the major indexes is occurring as traders anticipate two significant economic events scheduled for Wednesday.
**Economic Events Impact**
Wednesday's early trading is expected to be influenced by the Labor Department's closely watched report on consumer price inflation for May. Economists predict a 0.1% increase in consumer prices for May, following a 0.3% rise in April. Core consumer prices, which exclude food and energy, are forecasted to rise by 0.3% for the second consecutive month.
The annual consumer price growth rate is expected to remain steady at 3.4%, while the annual core consumer price growth rate may decelerate to 3.5% in May from 3.6% in April.
These inflation data could significantly influence interest rate outlooks ahead of the Federal Reserve's forthcoming monetary policy announcement later in the day. While the Fed is widely anticipated to maintain current interest rates, traders will closely scrutinize the accompanying statement and officials' latest economic and interest rate projections.
**Sector Analysis**
Most major sectors are showing only modest movements. However, banking stocks are experiencing notable weakness, pulling the KBW Bank Index down by 2.1% to its lowest intraday level in nearly two months.
Gold stocks are also under considerable pressure, with the NYSE Arca Gold Bugs Index plunging by 2.0%, driven by a slight dip in gold prices. Additionally, airline stocks have moved significantly lower, with the NYSE Arca Airline Index falling by 1.6%.
Other sectors such as steel, housing, and brokerage stocks are also encountering some weakness, while computer hardware stocks have shown modest strength.
**Global Markets**
Asian-Pacific markets exhibited a mixed performance during Tuesday's trading. Japan's Nikkei 225 Index increased by 0.3%, while China's Shanghai Composite Index decreased by 0.8%.
In Europe, all major markets moved downwards for the day. The French CAC 40 Index declined by 1.3%, the U.K.'s FTSE 100 Index fell by 1.0%, and Germany's DAX Index dropped by 0.7%.
**Bond Market**
In the bond market, treasuries regained ground after declines in the previous two sessions. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, decreased by 4.1 basis points to 4.428%.
