New York, NY – The stock market witnessed some volatility on Tuesday as the Dow Jones and other major indexes saw fluctuations ahead of a key inflation report. While the Dow Jones Industrial Average initially plummeted over 300 points, it managed to cut its losses by half, ending the day down 0.4%. The S&P 500 also experienced a 0.3% decline, with tech-heavy Nasdaq performing slightly better with only a 0.2% loss. As the Dow Jones index dipped below its 50-day moving average, the S&P 500 and Nasdaq hovered around their 21-day moving averages.
In the sector breakdown, utilities and real estate sectors showed resilience with gains, while industrials and financials saw declines. Notably, technology and consumer discretionary sectors experienced smaller losses. Small caps on the Russell 2000 index also faced volatility, falling by 0.2% as they grappled with the 21-day moving average. Additionally, trading volume on both the NYSE and Nasdaq exchanges was higher compared to the previous day.
In the realm of individual stocks, two prominent companies from the Magnificent Seven list displayed contrasting performances. Electric car maker Tesla saw a 1% increase after CEO Elon Musk announced the upcoming launch of the company’s robotaxi and dismissed rumors about discontinuing mass-market vehicle production. On the other hand, AI chip leader Nvidia experienced a 3% decline despite optimistic reports suggesting strong China sales.
Looking ahead, the Labor Department is set to release the Consumer Price Index report for March on Wednesday. Expectations are for a rise in inflation to 3.5% annually, with core inflation expected to decrease to 3.7%. The anticipated report can have significant implications for market sentiment and future monetary policy decisions.
Furthermore, the top gainers in the IBD MarketSurge Growth 250 index included insurance stock Root and retail stock American Eagle Outfitters. In the IBD 50 index, companies like MakeMyTrip and Permian Resources witnessed positive movements, indicating potential sector rotation trends in the market.
As the first quarter earnings season approaches, investors are keeping a close eye on major financial institutions like Wells Fargo, JPMorgan Chase, and Citigroup. These companies are expected to report their financial results later this week, providing insights into the overall health of the economy and corporate sector. Overall, market participants remain vigilant amid ongoing fluctuations and key economic developments impacting the stock market.