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Investing.com -- U.S. stocks traded in a mixed fashion Tuesday as investors digested fresh consumer inflation data as well as quarterly earnings from the banking sector.
At 09:35 ET (14:35 GMT), theDow Jones Industrial Averagefell 75 points, or 0.2%, theS&P 500index traded 5 points, or 0.1%, and theNASDAQ Compositeclimbed 25 points, or 0.1%.
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With investors eyeing the developments around the Fed, the publication of the December U.S. consumer price index, a closely-monitored gauge of inflation has generated additional attention.
U.S headline inflation in December matched both the preceding month, with consumer prices rising by 2.7%annuallyand by 0.3% on amonth-on-monthbasis. Both equaled November’s rates, and were in line with economists’ expectations.
Stripping out volatile items like food and fuel, the so-called "core" consumer price index from the Labor Department came in at an annualized 2.6% and 0.2%month-on-month. These were also the same as November’s reading, and were slightly cooler than estimates.
Inflation and labor market strength are the Fed’s two biggest considerations for setting interest rates.Nonfarm payrollsdata released last week showed some resilience in the labor sector.
"The chances of a rate cut in January are still slim - March looks more likely," said Jarek Sklodowki, head of trading at Financial Markets Online. "America’s recovery is still on track, even if job creation is disappointingly modest, so the Fed won’t be in a hurry to cut rates - but disinflation means it has the freedom to do so.”
Beyond tech and inflation, focus this week is also on the fourth-quarter earnings season, which begins in earnest with a host of major banks set to report in the coming days.
JPMorgan Chase (NYSE:JPM) reported fourth-quarter earnings which surpassed estimates, as strength at its trading and markets unit countered a decline in investment banking fees.
However, the country’s largest bank posted a fall in profit of 7% after it factored in a previously-disclosed $2.2 billion credit reserve linked to its acquisition of the Apple (NASDAQ:AAPL) credit-card program from Goldman Sachs (NYSE:GS).
Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) are set to report earnings on Wednesday.
Coupled with the inflation data, the outcome of the bank earnings could contribute to the tone for stock markets in the early weeks of 2026.
Robust bank earnings could help paint an upbeat picture of the state of Corporate America, and possibly alleviate some worries among more jittery investors in the process.
Elsewhere, Delta Air Lines (NYSE:DAL) reported fourth-quarter adjusted earnings that slightly exceeded analyst expectations, but shares fell after the airline’s revenue missed estimates and investors reacted to mixed guidance for 2026.
Oil prices rose, climbing for a fourth consecutive session as intensifying anti-government protests in Iran have stoked concerns of disruption of supply from this key OPEC producer.
Brent futures gained 1.6% to $64.89 a barrel and U.S. West Texas Intermediate crude futures rose 1.9% to $60.43 a barrel.
The Brent contract reached a seven-week high in the previous session, while the WTI benchmark rose to a one-month high.
Ambar Warrick contributed to this article
