US stocks reversed early gains as cautious investors weighed new economic data amid Nvidia (NVDA) big AI plans.
The benchmark S&P 500 (^GSPC) fell about 0.7% while the tech-heavy Nasdaq Composite (^IXIC) lost about 1.4%. The Dow Jones Industrial Average (^ DJI) decreased by about 0.1%.
Tuesday morning, of the Institute for Supply Management Manufacturing PMI indicated that the manufacturing sector continued to expand last month, although the Price Payments Index rose to a near two-year high of 64.4 from 58.2 previously.
The rate hike “is a concern for the Fed as it is consistent with PCE supercore inflation at 3.5% through the middle of next year,” wrote Capital Economics North America economist Thomas Ryan.
“It serves as a good reminder that the Fed’s fight against inflation is far from over, especially going into a year where tariffs and immigration restrictions are set to reignite price pressures.”
In addition, JOLTS job opportunities Increased than expected During the month of November. Fewer hires were also made than in the previous month while the quit rate, a sign of confidence among workers, fell to 1.9% from 2.1% seen in October.
Sets the stage for the data Friday’s all-important December jobs report. In recent days, Fed officials indicated that they would take a more gradual approach Given the inflexibility and constant inflation in the job market, to cut back.
Investors are now betting with near certainty that the central bank will keep interest rates unchanged later this month. According to the CME FedWatch tool.
Among corporates, shares of Nvidia reversed a nearly 5% decline after touching near record highs. nvidia CEO Jensen Huang’s CES keynote revealed on Monday A new AI superchip Among other planned products.
Despite Nvidia’s decline, other chip stocks rallied from Micron Technology (MU) about 4% and Asia’s names are making gains.
Meanwhile, monitoring continues for more clarity around Donald Trump’s Tariff Agenda. The president-elect on Monday denied a The Washington Post reports That is his team Consider other targeted measures – which will be more promising for global growth.
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