S&P 500 Holds Near Record High as Investors Await September Inflation Report
US stock indexes finished slightly lower on Tuesday, leaving the S&P 500 (SPX) virtually flat at 7,805.45 and just below its recent record high. Major bank shares, including Citigroup Inc. (C) and Wells Fargo & Co. (WFC), posted losses despite initial gains following quarterly results. Semiconductor stocks also pulled back as Micron Technology Inc. (MU) and Applied Materials Inc. (AMAT) declined over heightened competition from Chinese chipmaker CXMT. Meanwhile, Bumble Inc. (BMBL) jumped 57% after agreeing to a $1.3 billion buyout to go private, and Apple Inc. (AAPL) hovered near a historic $5 trillion valuation after unveiling its HomeView platform.
Market focus is shifting away from corporate earnings and toward macro data as elevated oil prices add pressure to global economic conditions. Crude futures pushed higher after military strikes in Saudi Arabia raised supply concerns, which could complicate central bank efforts to keep inflation in check. Rising energy costs threaten to squeeze consumer budgets and elevate expenses for businesses, keeping equity markets cautious and currency markets volatile.
Investors are now focused on the upcoming September Consumer Price Index report. Economists project headline inflation at 3.6% year-over-year and core inflation at 0.2% monthly. A higher-than-expected reading could boost the likelihood of a Federal Reserve interest rate hike in October. Quarterly earnings from financial heavyweights Bank of America Corp. (BAC), Morgan Stanley (MS), and BlackRock Inc. (BLK) will also draw close attention.
Key points
- The S&P 500 slipped 0.02% to 7,805.45 on Tuesday, remaining near its all-time high.
- Bumble jumped 57% following an agreement to go private in a $1.3 billion deal.
- Oil prices rose on supply risks following Houthi attacks on Saudi Arabian energy facilities.
- September US Consumer Price Index consensus expectations stand at 3.6% annually for headline inflation.
- Bank of America, Morgan Stanley, and BlackRock are set to release quarterly results on Wednesday.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
What is expected for the September US CPI inflation report?
Economists expect headline annual inflation to reach 3.6% and monthly core inflation to come in at 0.2%. A stronger-than-expected reading could increase expectations for a Federal Reserve interest rate hike in October.
Why did Bumble stock jump 57%?
Bumble stock surged after the company agreed to a $1.3 billion deal to go private.
Which major banks are reporting earnings on Wednesday?
Bank of America, Morgan Stanley, and BlackRock are scheduled to report earnings on Wednesday. Bank of America is also facing scrutiny over a $1.21 billion regulatory penalty for monitoring failures.