- US stocks sold off on Tuesday as investors prepare for the March CPI inflation report.
- The inflation report will help set the narrative on future interest rate cuts by the Federal Reserve.
- Following the CPI report, investors will turn their attention to the start of first quarter earnings results.
U.S. stocks fell on Tuesday as investors prepare for Wednesday morning's release of the March CPI report.
The March Consumer Price Index report is due out on Wednesday morning and investors are expecting a continued decline in inflation. Current estimates suggest that the year-over-year core CPI will fall to 3.7% compared to the previous reading of 3.8%, while the month-over-month core CPI is expected to fall to 0.3% compared to the previous reading of 0.4%.
Any acceleration in inflation will significantly increase the risk that the Federal Reserve's interest rate cuts will be rejected, and that could have negative implications for stock prices. according to JPMorgan. The bank anticipated two other scenarios depending on how the CPI report is viewed.
"Tomorrow's March CPI report will be critical," said Macquarie strategist Thierry Wizman.
Following the release of the CPI report, investors will turn their attention to the start of first-quarter earnings results, with JPMorgan and Wells Fargo kicking off earnings season before the market opens on Friday.
Here's where the US indices stood at the 4:00 pm closing bell on Tuesday:
This is what happened today:
In commodities, bonds and cryptocurrencies:
- West Texas Intermediate Crude oil fell 1.32% to $85.29 a barrel. Brent CrudeThe international benchmark index fell 1.01% to $89.47 a barrel.
- Gold jumped 0.68% to $2,367.00 an ounce.
- The 10-year Treasury yield fell six basis points to 4.367%.
- bitcoin fell 3.86% to $68,865.
