Headline: Markets Mixed as Investors Assess Tariffs and Inflation Data
Introduction:
US stocks closed with mixed results on Tuesday as investors balanced concerns over President Trump's tariff announcements with expectations for upcoming inflation figures. Traders also awaited testimony from Federal Reserve Chair Jerome Powell.
Market Performance:
* The Dow Jones Industrial Average (^DJI) edged up 0.3%.
* The S&P 500 (^GSPC) closed slightly above the flatline.
* The Nasdaq Composite (^IXIC) retreated by 0.4%.
Tariffs:
Tariffs on steel and aluminum imports from China, Canada, and Mexico have raised uncertainty for investors. Additionally, analysts are anticipating more tariff measures against countries that impose levies on US goods.
Inflation Data:
The Consumer Price Index (CPI) and its "core" version (excluding volatile food and energy costs) will be released on Wednesday and Thursday, respectively. Economists predict headline inflation of 2.9%, while core CPI is expected to dip to 3.1%.
Federal Reserve:
Federal Reserve Chair Jerome Powell emphasized the central bank's independence and stated that it is not their role to comment on trade policies. Additionally, he indicated that the Fed is in no rush to adjust interest rates.
Other Notable Developments:
* Intel (INTC) shares rose 6.5% after US Vice President JD Vance assured that AI systems would rely on domestically produced chips.
* Super Micro Computer (SMCI) stock plunged 7% despite a five-day rally.
* Tesla (TSLA) declined over 5% amid concerns about AI spending and competition from Chinese automaker BYD.
* Gold futures pulled back after hitting a record high due to tariff-related demand.