Wall Street's Volatility: Markets Brace for Inflation Impacts

Wall Street indices slipped as investors awaited key U.S. inflation reports, significant for the Federal Reserve's interest rate decisions. Communication services bolstered by Alphabet's gains led sector performance, while real estate and technology sectors lagged. Significant individual stock movements included MongoDB, Walgreens, Alaska Airlines, Boeing, and Toll Brothers.

Wall Street faced a downturn on Tuesday as investors eagerly awaited crucial inflation data that may impact the Federal Reserve's upcoming interest rate decisions. With the release of the Consumer Price Index imminent, stakeholders are positioning themselves ahead of the Fed's mid-December meeting.

Within the S&P 500's sectors, communication services saw a robust 2.5% rise, fueled by a significant 5.3% increase in Google's parent company Alphabet after introducing a new chip. However, rate-sensitive sectors such as real estate, which dropped 1.4%, and technology, down 1%, underperformed.

The market is particularly attentive to the Consumer Price Index data due on Wednesday, which could shape monetary policy expectations. Investors hope for inflation results aligning with projections to support a potential interest rate cut. Nonetheless, some speculate the Fed will pause easing next month amid economic resilience, following recent positive unemployment and job growth data. Amid this climate, various stocks, including MongoDB, Walgreens, Alaska Airlines, and Boeing experienced notable fluctuations.

(With inputs from agencies.)