US Stocks Mixed as Investors Await Inflation Data and Trade Policy Shifts

US stocks closed with mixed results on Tuesday as investors assessed President Donald Trump's recent tariff announcements and anticipated upcoming inflation data.

Market Snapshot

* Dow Jones Industrial Average (^DJI): Up 0.3%
* S&P 500 (^GSPC): Flat
* Nasdaq Composite (^IXIC): Down 0.4%

Key Points

* Tariff Uncertainty: Investors are cautious as Trump prepares to unveil a plan for universal tariffs on foreign goods. This could further strain trade relations and impact key trading partners like Canada and Mexico.
* Powell's Testimony: Federal Reserve Chair Jerome Powell emphasized the Fed's independence and reiterated that the central bank is not in a rush to adjust interest rates. He also declined to comment on trade policy.
* Inflation Outlook: January's Consumer Price Index (CPI) is expected to show a slight deceleration in inflation on Wednesday. However, investors will be watching closely for signs of persistent price pressures.

Sector Performance

* Energy: Oil futures rose as sanctions on Russian crude continue to impact supply.
* Technology: The Nasdaq underperformed due to concerns about AI spending and potential regulatory action against stablecoins.
* Consumer Staples: Coca-Cola discussed the impact of tariffs on its commodities and emphasized its ability to manage costs.

Notable Events

* Super Micro Computer (SMCI) reported preliminary quarterly earnings that missed estimates, leading to a drop in its stock price.
* Tesla (TSLA) declined after Chinese automaker BYD announced a partnership for autonomous technology development.
* SVB Collapse: Powell said the Federal Reserve has revised its playbook following the 2023 collapse of Silicon Valley Bank, focusing on interest-rate risk and unstable funding.

Outlook

The market remains uncertain as investors navigate tariff policy shifts and await inflation data. Traders will be closely monitoring any developments in the trade war and the Fed's future actions.