Market Jitters: Stocks Dip as Investors Eye Key Inflation Reports

As investors await key inflation data that may influence the Federal Reserve's interest rate decision, Wall Street's main indexes closed lower. Alphabet's shares surged, boosting communication services, while Oracle and Nvidia faced challenges in the tech sector. Market focus remains on economic data and potential Fed actions.

On Tuesday, Wall Street experienced a downturn as investors anxiously awaited pivotal inflation reports that could shape the Federal Reserve's upcoming interest rate decision. Notably, the communication services sector saw a lift due to Alphabet's stock rally, following the unveiling of its new chip.

Conversely, the technology sector faced setbacks, driven by a decline in Oracle shares after the company failed to meet Wall Street's expectations for its second-quarter results. Additionally, chipmakers, including Nvidia, suffered following China's announcement of an investigation into potential anti-monopoly violations, perceived as a retaliatory move against U.S. restrictions on China's chip industry.

The S&P 500 dropped by 16.53 points to close at 6,036.32. In anticipation of upcoming consumer and producer price indices, investors remain cautious, with some hoping for signs that could indicate a pause in the Fed's easing cycle. The market remains vigilant for insights into the Fed's future interest rate trajectory.

(With inputs from agencies.)