4:17pm: Wall Street retreats
US stocks retreated on Tuesday as investors exercised caution ahead of a crucial consumer inflation report that could influence future interest rate decisions.
At the close, the Dow Jones fell 0.4% to close at 44,248, while the S&P 500 dropped 0.3% to 6,035. The tech-heavy Nasdaq Composite also reversed earlier gains, ending the session 0.3% lower at 19,687.
The market's cautious stance reflects the anticipation surrounding Wednesday's consumer price index (CPI) data, which is expected to provide insights into inflationary trends and potentially impact the Federal Reserve's monetary policy decisions. Despite the day's losses, all three major indexes remain near their recent record highs, as investors continue to weigh the possibility of interest rate cuts in the coming year.
3:40pm: US Steel deal nixed by Biden: Bloomberg
President Joe Biden plans to formally prevent Nippon Steel Corp.’s $14.1 billion acquisition of United States Steel Corporation (NYSE:X) (United States Steel Corporation (NYSE:X)), citing national security concerns, according to a report by Bloomberg.
The proposed deal, announced last December, faced strong opposition from stakeholders, including the United Steelworkers union and President Biden, who had pledged to ensure U.S. Steel remains under American ownership.
Following the news, shares of U.S. Steel dropped 17.8% before being halted on Tuesday afternoon.
2:30pm: Walgreens going private?
Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A) (Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A), Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A)) shares soared over 20% on Tuesday following reports that private equity firm Sycamore Partners is in talks to take the struggling drugstore chain private.
The Wall Street Journal reported that Sycamore, known for acquiring troubled retailers like Staples and Belk, is reportedly exploring a deal that could involve breaking up Walgreens.
The rally marked the stock's biggest single-day gain in decades.
1:41pm: Expect capital spending to go 'into overdrive'
This morning’s release from the National Federation of Independent Business (NFIB) shows businesses plan to increase their capital spending, according to Jeffrey Roach, Chief Economist for LPL Financial.
The November release shows that 28% of businesses plan to increase near-term capital spending, the highest since January 2022, driven by the need to adapt to changing demands.
While 2025 capital spending plans vary across industries—Chevron plans reductions, while MDU Resources anticipates increases due to infrastructure demand—overall business optimism has surged to its highest level since June 2021, nearing pre-pandemic levels.
"In general, businesses find the current macro context to be positive for increasing capital spending which will be supportive to overall economic growth next year," Roach wrote.
12:03pm: Inflation data looming
Markets were mixed in midday trading on Tuesday, as investors remained cautious ahead of a key inflation report.
The Dow and the S&P 500 hovered near the flatline at 44,428 and 6,053 respectively, while the Nasdaq outperformed, gaining 0.1% to 19,756.
The cautious sentiment followed Monday’s session, where all three major indices posted losses. Markets are hesitant ahead of Wednesday's consumer inflation data, which could heavily influence the Federal Reserve's next move on interest rates.
In corporate news, Oracle shares plunged over 8% after the company reported disappointing quarterly revenues. The shortfall, attributed to heightened competition in the cloud computing sector, has erased approximately $45 billion in market value for the tech giant.
11:05am: Buy the dip
Expect a quieter day today in the markets after China's probe of Nvidia rocked tech stocks yesterday, says Michael Brown at Pepperstone.
"One wonders if other nations will follow suit here – I’m sure folk in the EU are taking notes, given their love of over-regulating absolutely everything in existence," Brown wrote.
"In any case, NVDA lost around 3%, a stupendous $100bln in market cap terms, while the broader tech sector also underperformed, as the Nasdaq 100 led Wall St lower.
"As with the buck, I’d still be a dip buyer of equities, given the continuing bull case of strong earnings growth, solid economic growth, and the ‘Fed put’ backstopping sentiment."
9.54am: Mixed start on Wall Street
Wall Street got off to a mixed start on Tuesday as traders continued to await inflation figures due later in the week.
The Nasdaq ticked up 0.4% as trading got underway, while the Dow Jones fell 0.4% and S&P 500 dipped just below the mark.
A quieter start to the week has left attention on Wednesday’s inflation reading for November as markets mull the probability of another Federal Reserve rate cut later this month.
On the company front, Oracle Corp (NYSE:ORCL, ETR:ORC) tumbled 8.6% early on after second-quarter figures overnight undershot expectations, while MongoDB Inc (NASDAQ:MDB) also slipped on results.
Alaska Air Group (NYSE:ALK) Inc soared 11.8% after upping its fourth-quarter outlook in earnings in the meantime.
Google owner Alphabet Inc (NASDAQ:GOOG) also jumped 5.7% following the unveiling of its ‘Willow’ experimental quantum computing chip.
7.19am: Gains expected
Wall Street looked set to regain slightly on Tuesday after Monday saw declines across the board for the Nasdaq, Dow Jones and S&P 500.
Futures had the Nasdaq and S&P 500 moving 0.1% higher ahead of Tuesday’s opening bell, while the Dow Jones was seen just above the mark.
Scope Markets analyst Joshua Mahony noted the early-week declines had reflected “signs of instability” in the wake of a bumper November on Donald Trump’s election victory.
“For all the talk of a Santa rally, the weakness seen throughout US stocks serves to provide a warning that we might see a pullback before any year-end surge can take place,” he said.
Attention this week has been on Wednesday’s inflation report, with markets expecting consumer prices to have risen by 2.7% in November and in turn pave the way for a Federal Reserve rate cut later in the month.