By Caroline Valetkevitch
NEW YORK (Reuters) – U.S. Treasury yields fell while ending slightly higher on Tuesday after data showed U.S. producer prices rose less than expected in December, but investors remained cautious. remained cautious ahead of Wednesday's U.S. consumer price data and the start of quarterly earnings reports.
The US producer price index rose 0.2% month-on-month in December, below expectations for a 0.3% increase and down from 0.4% in November.
Investors have been worried about persistent US inflation. The PPI report did not change the view that the Federal Reserve would not cut interest rates again before the second half of this year, and investors are still awaiting the US consumer price index report, which is being followed closer.
CPI data is expected to show that month-on-month inflation remained at 0.3% in December, while the year-on-year figure rose to 2.9%, from 2.7% in November.
Investors are also preparing for fourth-quarter 2024 earnings in the US, with results from some of the largest US banks due to be released starting Wednesday. Lenders were expected to report stronger profits, driven by strong trading and trading.
The S&P 500 swung between gains and losses throughout the session before closing up 0.1%. The Dow Jones also ended the day higher, while the Nasdaq finished lower.
“Tomorrow really marks the start of earnings season. With everything going on in the market, the economy and politics, it's going to be a cautious period for a while. I don't expect much from the markets until we get to the results.” season and see what companies are reporting and what they're saying about how things are,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
The S&P 500 rose 6.69 points, or 0.11%, to 5,842.91 and fell 43.71 points, or 0.23%, to 19,044.39.
MSCI's gauge of global stocks rose 2.62 points, or 0.31%, to 834.41. The index fell 0.08%.
The possibility of tariffs that could boost inflation once President-elect Donald Trump is in office also looms over the market.
Bloomberg reported that Trump's advisers were weighing ideas that included raising tariffs by 2% to 5% monthly to increase U.S. leverage and try to avoid an inflationary surge.
“There's a lot of concern about the Trump platform and whether it will be inflationary, both from a tariff perspective and from a tax reduction perspective,” said Rick Meckler, a partner at Cherry Lane Investments, a family investment office in New Vernon. New Jersey.
The yield on the benchmark 10-year Treasury bond declined but remained near its 14-month high.
It last dipped slightly to 4.788% after hitting 4.805% overnight, the highest level since November 2023.
Higher yields have weighed on stocks by making bonds relatively more attractive and raising the cost of borrowing for companies.
The dollar weakened against the euro but remained near its highest level in more than two years.
The , which measures the dollar against a basket of currencies that includes the yen and the euro,
fell 0.21% to 109.19, and the euro fell 0.03% to $1.0304.
Oil prices fell after a US government agency forecast stable oil demand in the country in 2025, while raising its supply forecast.
It fell $1.32 to settle at $77.50 a barrel and fell $1.09 to settle at $79.92.
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