US Stocks Mixed Amid Tariff Concerns and Key Inflation Data

US stocks closed mixed on Tuesday as investors weighed the implications of President Trump's latest tariff announcements and looked ahead to upcoming inflation data.

The Dow Jones Industrial Average (DJI) edged higher by 0.3%, while the S&P 500 (GSPC) ended slightly above flat. The tech-heavy Nasdaq Composite (IXIC) slipped by 0.4%.

Investors remain cautious ahead of Trump's planned announcement of universal like-for-like tariffs, expected midweek. On Monday, the president imposed 25% tariffs on all steel and aluminum imports effective March 12th. These measures further pressure key trading partners Canada and Mexico.

Attention is also focused on Wednesday's release of the Consumer Price Index (CPI) for January and its wholesale counterpart on Thursday. Persistent inflation remains a concern for investors.

Federal Reserve Chair Jerome Powell testified before Congress on Tuesday, reiterating that the Fed is not in a hurry to adjust interest rates and emphasizing the importance of central bank independence.

Powell indicated that housing prices are likely to remain elevated, even with potential interest rate declines. He also expressed optimism for a regulatory framework for stablecoins and highlighted the revision of the Fed's playbook following the collapse of Silicon Valley Bank in 2023.

Earnings reports from technology companies weighed on the Nasdaq. Tesla (TSLA) fell after Chinese automaker BYD partnered with DeepSeek to develop autonomous technology. Meta (META) announced job cuts amid a pivot towards finding AI talent.

Gold prices retreated slightly after a recent surge. However, analysts predict further gains amid tariff-driven demand and concerns about geopolitical tensions.

Oil futures rose due to signs that US sanctions are impacting Russian crude output. Brent crude futures climbed to $77 per barrel, while West Texas Intermediate futures rose to $73.35 per barrel.

Overall, the market remains uncertain as investors navigate tariff concerns and monitor inflation data. The Fed's stance on interest rates and the progress of ongoing trade negotiations will also influence market sentiment in the coming weeks.