US Stocks Mixed Amid Tariff Policy and Inflation Data Anticipation

On Tuesday, US stocks closed mixed as investors digested President Trump's tariff policy adjustments and anticipated key inflation data, set for release on Wednesday.

The Dow Jones Industrial Average (^DJI) edged higher by 0.3%, while the S&P 500 (^GSPC) closed slightly above the flatline. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) retreated around 0.4%.

Traders cautiously awaited Trump's announcement of universal tariffs, scheduled for midweek. On Monday, the president imposed 25% tariffs on steel and aluminum imports effective March 12, putting pressure on Canada and Mexico.

January's Consumer Price Index (CPI) is expected to show inflation at 2.9%, matching the annual gain in December. The report, due Wednesday morning, will provide insights into whether inflationary pressures have eased.

In earnings news, Super Micro Computer (SMCI) stock fell ahead of its earnings report, despite a recent rally. Tesla (TSLA) shares declined over 5% after Chinese automaker BYD partnered with DeepSeek to develop autonomous technology.

Gold remained elevated after surging 10% this year, driven by tariff threats. UBS analysts anticipate further gains, projecting a price target of $3,000 per ounce for 2025.

Federal Reserve Chairman Jerome Powell emphasized the importance of central bank independence during his testimony before Congress. He reiterated the Fed's commitment to focusing on economic data and avoiding political bias.

Powell stated that housing prices are likely to remain elevated, even with potential interest rate declines. He expressed uncertainty about the impact of lower rates on housing inflation.

Regarding stablecoins, Powell affirmed that the Fed would support a regulatory framework to ensure consumer protection. However, he emphasized that it is not the Fed's responsibility to comment on trade policies.

Powell declined to comment on whether the US economy had achieved a "soft landing," noting that it was not his role to speculate. He also acknowledged that the playbook for addressing bank crises had been revised after the collapse of Silicon Valley Bank.

Overall, the market remained cautious as investors navigated tariff uncertainty and anticipated inflation data.