Headline: Stocks Mixed in Pre-Market Trading as Investors Await Key Inflation Data
U.S. stocks were mixed in pre-market trading on Tuesday as investors awaited key inflation data. The Dow Jones Industrial Average was down 100 points, while the S&P 500 was up 5 points and the Nasdaq Composite was up 10 points.
Investors are looking ahead to the release of the Consumer Price Index (CPI) for April on Wednesday. The CPI is expected to show that inflation rose 8.1% in April from a year ago, the highest rate of inflation in 40 years.
A high inflation reading could lead to the Federal Reserve raising interest rates by 0.75 percentage points at its meeting later this month. A more moderate inflation reading could lead to the Fed raising rates by 0.5 percentage points.
In other news, oil prices were down 1% to $110 per barrel. The dollar was up slightly against the euro and the Japanese yen.
Stocks are likely to remain volatile in the near term as investors await key inflation data and the Fed's decision on interest rates. Investors should be prepared for more volatility and should focus on investing in high-quality companies with strong balance sheets.
- The CPI is a measure of the change in prices paid by urban consumers for a basket of goods and services.
- The Fed is expected to raise interest rates in an effort to combat inflation.
- A high inflation reading could lead to the Fed raising rates by 0.75 percentage points, while a more moderate inflation reading could lead to the Fed raising rates by 0.5 percentage points.
- Oil prices are down 1% to $110 per barrel.
- The dollar is up slightly against the euro and the Japanese yen.