US markets ended Tuesday on a mixed note, as investors braced for a key inflation report that could shape the first interest rate cut in years.
The S&P 500 bounced back from earlier losses, closing up 0.5%, while the Nasdaq climbed 0.9%.
The Dow, however, slipped 0.2%, dragged down by JPMorgan Chase, which warned that forecasts for its net interest income were too optimistic.
The bank’s shares tumbled 5%, leading to the Dow’s decline.
Oil had a rough day too. Prices plunged after OPEC trimmed its demand growth forecast for 2024 and 2025.
West Texas Intermediate sank over 3%, hovering near $66 per barrel, and Brent fell below $70—a level unseen since December 2021.
These market swings followed Monday’s 1% surge, which came as investors hunted for post-rout bargains.
But volatility is still shaking the markets, as the tug-of-war between hopes for a 0.5% rate cut and looming recession fears keeps traders on edge.
Wednesday’s consumer inflation data could offer clues on the Federal Reserve’s next move.
Alongside Thursday’s wholesale inflation report, these are the final signals before policymakers meet on September 17.
Business leaders are also keeping an eye on political developments, with Donald Trump and Kamala Harris set to face off in the first presidential debate on Tuesday evening.
In the tech space, Apple shares slipped after the company lost an EU court battle over a $14 billion tax bill, following an iPhone 16 launch that fell flat on AI expectations.
On the flip side, Oracle surged over 10% as cloud service demand boosted its earnings beyond expectations.
The markets are navigating choppy waters, but all eyes are on the Fed’s next move—will it be the life raft or just another wave?
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