After an initial upward move early in the session, stocks have retraced over the course of Tuesday's trading. The major indices have retreated from their earlier peaks and are now hovering around the unchanged mark.
At present, the leading averages are showing slight gains. The Dow Jones Industrial Average is up 15.87 points, under one-tenth of a percent, at 44,417.80. Meanwhile, the Nasdaq Composite has gained 33.60 points, or 0.2%, reaching 19,770.29, and the S&P 500 is up by 3.01 points, or 0.1%, standing at 6,055.86.
Initially, stocks appeared to gain from bargain hunting following the previous session's weakness, but purchasing momentum waned shortly after the opening bell.
Investors might be wary of making substantial moves ahead of the Labor Department's eagerly anticipated report on consumer price inflation due on Wednesday.
The anticipated report is projected to show that consumer prices increased by 0.2% for the fifth consecutive month in November, while the annual growth rate is expected to edge up to 2.7% in November from 2.6% in October.
Excluding food and energy, core consumer prices are predicted to rise by 0.3% for the fourth consecutive month in November. The yearly growth rate of core consumer prices is forecasted to remain steady at 3.3%.
While it's widely anticipated that the Federal Reserve will reduce rates by an additional 25 basis points next week, this data may impact future rate cut expectations from the central bank.
According to CME Group's FedWatch Tool, there is an 88.0% probability that the Fed will cut rates by a quarter-point next week. However, there is a 71.8% likelihood that the central bank will then maintain rates in late January.
**Sector Insights**
The day has seen a significant drop in computer hardware stocks, with the NYSE Arca Computer Hardware Index plummeting by 3.6%, after reaching nearly a five-month high in Monday's trading session.
Semiconductor stocks also show marked weakness, evidenced by the Philadelphia Semiconductor Index posting a 1.5% loss.
Housing stocks are experiencing notable declines today, dragging the Philadelphia Housing Sector Index down by 1.5%.
Leading the sector's downturn is Toll Brothers (TOL), following fiscal fourth-quarter earnings and revenues that exceeded expectations, though presenting a weaker-than-anticipated unadjusted homebuilding gross margin.
Conversely, airline stocks exhibited strong upward movement, propelling the NYSE Arca Airline Index up by 2.3%. Alaska Air Group (ALK) is seeing a significant surge of 14.8% after it increased its fourth-quarter profit forecast.
**Global Markets Overview**
In international markets, the Asia-Pacific region experienced mixed results during Tuesday's trading session. Japan's Nikkei 225 Index advanced by 0.5%, while Hong Kong's Hang Seng Index descended by 0.5%.
Across Europe, stocks largely trended downward. France's CAC 40 Index fell by 1.0%, and the U.K.'s FTSE 100 Index decreased by 0.8%. However, Germany's DAX Index slightly diverged from the broader trend, edging up by 0.1%.
In the bond market, treasuries continue to pull back following the previous session. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has risen by 3.7 basis points to reach 4.236%.
