Wall Street operates cautiously awaiting US inflation data

Wall Street trades mixed this Tuesday, April 11, as investors remain on the sidelines awaiting US inflation data to be released on Wednesday, which could determine the Federal Reserve’s next monetary policy measures.

In this framework, the S&P500 index barely registers changes with increases of 0.6%. Falls in large-cap stocks like Microsoft Corp and Amazon.com Inc weighed on the Nasdaq -0.5%, while gains in industrials like Caterpillar Inc lifted the Dow Jones 0.19%.

Seven of the S&P’s 11 major sectors rose, with gains in industrials and materials stocks offsetting losses in technology stocks.

Hopes that the Fed will end its aggressive monetary policy tightening soon have helped the S&P 500 stabilize so far in April after the bankruptcies of two midsize US lenders sparked a sell-off last month.

However, a strong job market report released on Friday raised bets that the US central bank will raise interest rates by 25 basis points in May, and money market traders put the probability at almost 70%. this rise occurs, according to the CME Group Fedwatch tool.

Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina

This marks a reversal in traders’ bets for a pause in the Fed’s monetary policy tightening after recent weak economic data raised the possibility of a US recession.

Data on Wednesday would show consumer prices rose 5.2% in March, after rising 6.0% in February. However, core prices would have gained 5.6%, slightly higher than the 5.5% in February.

Investors will also scrutinize earnings reports from big US banks Citigroup Inc, JPMorgan Chase & Co and Wells Fargo & Co on Friday for clues about the overall health of the banking sector.