Stock market today: Stocks fall in whipsaw trading action as inflation report looms
Published On Sep 10, 2024, 12:31 PM
US stocks exhibited mixed performance on Tuesday ahead of a key consumer inflation report that may influence future interest rate decisions by the Federal Reserve. The S&P 500 and Nasdaq Composite indexes rose by 0.5% and 0.9%, respectively, while the Dow Jones fell by 0.2% due to a significant drop in JPMorgan Chase's shares after the bank reported high forecasts for its net interest income. Additionally, oil prices declined sharply following OPEC's reduction in demand growth forecasts for 2024 and 2025, causing West Texas Intermediate to fall more than 3%.
Stock Forecasts
ORCL
Positive
With the upcoming CPI report expected to show a moderation in inflation, this could bolster the case for the Federal Reserve to implement a rate cut, supporting a positive market outlook. The technology sector, particularly companies like Oracle that have shown strong earnings, might benefit as investors gravitate towards growth stocks in a lower interest rate environment.
XLE
Negative
Given the significant drop in oil prices and OPEC's lowered demand growth forecast, energy stocks may continue to struggle. Investors may want to be cautious with stocks in the energy sector as the outlook appears bleak based on current oil price trends.
JPM
Negative
JPMorgan's stock reaction suggests ongoing challenges for financial stocks, especially if interest rate expectations remain uncertain or if the bank's profitability is compromised due to lower net interest income. This could lead to cautious sentiment in the banking sector.
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