Stock Market Jitters Amid Inflation Concerns

The stock market remained volatile as the S&P 500 closed nearly unchanged and the Nasdaq dipped after investors assessed inflation data and awaited quarterly earnings. Concerns about the Federal Reserve's policy and potential tariffs were prevalent, while big banks are expected to report robust profits.

The S&P 500 ended the day nearly unchanged, while the Nasdaq saw a slight decline after a tumultuous trading session. Investors weighed new inflation data and awaited quarterly earnings reports to evaluate stock valuations and the U.S. economy's strength.

Initial gains fueled by a Labor Department report on a smaller-than-expected rise in the producer price index were offset by anticipation of Wednesday's consumer price index results. "Although there was a relief rally, uncertainty about interest rates and the Federal Reserve's direction persists," said Chris Fasciano of Commonwealth Financial Network.

With earnings season kicking off, big banks are expected to report strong profits, although healthcare stocks lagged. The S&P 500 bank index rose, buoyed by Goldman Sachs' performance, while elevated U.S. Treasury yields and potential Trump administration tariffs kept investors cautious.