US stocks traded mixed on Tuesday as investors worried about a longer inflation fight from the Fed. The Minneapolis Fed president warned the US has more work to do to lower high prices. The S&P 500 and Dow Jones Industrial Average ticked lower in early morning trading, though the Nasdaq Composite edged higher following its seventh-straight winning session on Monday.
Minneapolis Federal Reserve president Neel Kashkari cautioned that rates could move higher still and stay elevated for longer, as central bankers keep a hawkish eye on inflation. The Fed’s 2% inflation target has been exceeded, with a 3.7% year-over-year increase in September. Kashkari emphasized in an interview with Fox News on Monday, “We haven’t completely solved the inflation problem. We still have more work ahead of us to get it done.”
Investors are largely expecting rates to remain elevated through 2024, pricing in a 94% chance that rates will stay above 4% by December of next year, as indicated by the CME FedWatch tool.
Traders are anticipating the release of the October inflation report by the Bureau of Labor Statistics next Tuesday.
Shortly after the 9:30 a.m. opening bell on Tuesday, US indexes stood as follows:
– S&P 500: 4,357.84, down 0.19%
– Dow Jones Industrial Average: 34,052.34, down 0.13% (-43.52 points)
– Nasdaq Composite: 13,530.48, up 0.09%
In commodities, bonds, and crypto:
– West Texas Intermediate crude oil dipped 2.19% to $79.05 a barrel.
– Brent crude, the international benchmark, fell 2.10% to $83.39 a barrel.
– Gold slipped 0.55% to $1,966.95 per ounce.
– The 10-year Treasury yield dropped five basis points to 4.604%.
– Bitcoin fell 0.93% to $34,760.
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