U.S. Stocks Edge Higher Amid Tech Volatility Ahead of Inflation Data
Nvidia Leads Tech Sector Down, Alphabet Boosts Market
U.S. stocks managed to eke out gains on Tuesday despite facing fluctuations between losses and gains, primarily driven by a dip in the tech sector led by Nvidia. The tech giant’s slip below a key technical level triggered selling pressure, while rival Intel’s positive chip announcement added to the sector’s woes. However, gains in other chip stocks like Wolfspeed Inc, GlobalFoundries Inc, and Amkor Technology Inc helped offset the losses, with Alphabet’s rise further supporting the market with new product unveilings and cloud partnerships.
Inflation Data and Fed Minutes Influence Rate Cut Speculations
Investors are closely watching the upcoming consumer price index (CPI) inflation data for March and the Federal Reserve’s meeting minutes for clues on potential rate cuts. While inflation is expected to show a slight uptick, concerns about high inflation delaying rate cuts persist. The Fed’s guidance for rate cuts this year may be influenced by the data, with expectations for a 25 basis point cut in June currently at 54% according to the CME Fedwatch tool.
Boeing Faces Scrutiny as Deliveries Decline
Boeing Co witnessed a nearly 2% drop following reports of an FAA investigation into flaws in its 787 Dreamliner, adding to the company’s recent troubles. Production halts and regulatory probes have impacted Boeing’s aircraft deliveries, with the first-quarter total hitting a three-year low. Meanwhile, Lucid Group Inc saw a rise in stock value after reporting strong first-quarter deliveries, while financials remained subdued ahead of Q1 earnings reports from major banks.
Market Expectations and Future Outlook
As Wall Street gears up for a busy earnings season, investors are keen on assessing the financial performances of key players like JPMorgan Chase, Citigroup, Wells Fargo, Delta Air Lines Inc, and BlackRock Inc. The market will closely monitor these reports to evaluate the recent surge in valuations and gauge the overall economic landscape.
