Stock market today: Wall Street drifts as it waits for inflation data

Wall Street remained calm Tuesday as investors looked ahead to the week’s pivotal moment: Wednesday’s inflation report.

U.S. stock indexes barely moved, with the S&P 500 staying virtually flat in afternoon trading, the Dow Jones Industrial Average slipping by 10 points (less than 0.1%), and the Nasdaq composite edging up 0.1%.

Oracle’s Slide Weighs on Markets

Tech giant Oracle dragged down the S&P 500, tumbling 7.7% after its quarterly growth narrowly missed analyst expectations. Despite CEO Safra Catz highlighting record demand for AI-related cloud infrastructure, Oracle’s soaring 81% stock rally this year set a high bar for investor expectations.

In contrast, C3.ai rose 4.3% after reporting a smaller-than-expected quarterly loss and revising its fiscal year loss forecast. The AI software company’s performance continues to reflect the broader sector’s focus on growth opportunities driven by artificial intelligence.

Treasury Yields Tick Higher Ahead of Inflation Data

The bond market saw Treasury yields rise slightly as investors awaited inflation data crucial to the Federal Reserve’s upcoming policy decisions. The yield on the 10-year Treasury inched up to 4.23% from 4.20% late Monday.

The inflation report, along with Thursday’s wholesale price data, will provide key insights for the Fed’s December meeting. Many expect the central bank to announce its third interest rate cut of the year, as it balances inflation control with support for a cooling jobs market.

Mixed Moves Across Sectors

The housing sector faced challenges, with Toll Brothers dropping 6% despite surpassing profit and revenue expectations. High mortgage rates continue to weigh on the industry, though CEO Douglas Yearley Jr. noted encouraging demand in the luxury market as the spring selling season approaches.

In contrast, Alaska Air Group soared 12.1% after raising its profit forecast for the current quarter. The airline credited stronger-than-expected holiday travel demand and announced a $1 billion stock buyback plan. Vail Resorts also climbed 1.9% after reporting a narrower-than-expected first-quarter loss, bolstered by early-season skiing demand.

Global Markets Show Mixed Results

Overseas, China’s markets reflected uncertainty as export growth in November fell short of expectations. The Shanghai index rose 0.6%, while Hong Kong’s slipped 0.5%.

As Wall Street braces for Wednesday’s inflation report, investors are watching closely to gauge the Federal Reserve’s next moves and their potential ripple effects across sectors and global markets.