NEW YORK: Wall Street stocks opened mixed Tuesday after fresh data from the Labor Department showed inflation came in slightly above expectations in February.
The hot data will likely keep the US Federal Reserve on pause when it comes to interest rate cuts, as it looks to bring inflation back down firmly to its long-term two percent target.
Shortly after markets opened, the Dow Jones Industrial Average was down 0.1 percent at 38,742.00, while the S&P 500 rose 0.1 percent to 5,124.29.
Wall St slips as investors brace for inflation data
The tech-heavy Nasdaq Composite Index also rose, climbing by 0.2 percent to 16,044.00.
The muted reaction on Wall Street suggests investors are not overly concerned by the increase in the annual headline consumer inflation rate, from 3.1 percent in January to 3.2 percent in February.
So-called “core” inflation, which strips out volatile food and energy costs, edged lower on an annual basis.
But it came in slightly higher than anticipated on a monthly basis, increasing by 0.4 percent.
This “hotter than forecast” monthly core inflation print will fuel Fed officials’ “cautiousness regarding the inflation outlook,” Nationwide chief economist Kathy Bostjancic wrote in a note to clients.
A June start to interest rate cuts “is increasingly likely,” she added.
Tech stocks were more buoyant Tuesday, with chipmaker Nvidia and Facebook owner Meta’s share prices both rising by 0.8 percent in early trading.
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