Wall Street Slides Amid Inflation Worries and New Tariff Policies

Wall Street faced downturns as U.S. producer prices modestly rose in December, failing to alter the Federal Reserve's 2025 rate cut outlook. Investors brace for inflation data and earnings, with fears of Trump-inspired tariffs. Eli Lilly and Boeing decline, contributing to NASDAQ and S&P 500 slumps.

Wall Street's major indices experienced a downturn on Tuesday as attention turned to upcoming inflation data and quarterly earnings reports. Despite a slight rise in the December 2024 producer price index, investor sentiment reflected caution, with predictions of future rate cuts by the Federal Reserve remaining unchanged.

As Boeing and Eli Lilly shares declined due to disappointing forecasts, lingering concerns about incoming tariff policies under President-elect Trump added to market uncertainties. The prospect of robust bank earnings juxtaposes fears of negative corporate guidance impacting future market performance.

With the Dow, S&P 500, and NASDAQ showing losses, anticipation builds for Wednesday's consumer price index figures, influencing market dynamics alongside looming economic policy shifts and inflation fears.

(With inputs from agencies.)