(Updates prices, adds commentary, New York date)
By Sinéad Carew and Amanda Cooper
NEW YORK, LONDON, January 10 (Reuters) –
Trading on Wall Street’s main indexes was uneven on Tuesday with the S&P 500 hovering between the red and the green as Treasury yields rose as investors eagerly awaited U.S. inflation data due later in the week.
The US dollar was little changed against the euro and other major currencies, hovering around its weakest level in seven months as investors braced for December consumer price data due out on Thursday.
U.S. Treasury yields rose as investors braced for inflation figures that could affect the way the Federal Reserve raises interest rates as it ramps up its fight against decades-high inflation.
The US consumer price index (CPI) is expected to show headline inflation in November at 6.5% versus 7.1% in December.
“Markets are generally looking forward to this Thursday’s CPI print for December. That will be the biggest data point of the week and will certainly give us some clarity around the direction of inflation,” said Mona Mahajan, senior investment strategist at Edward Jones. .
“We feel a bit of a sideways movement in the market today and we will probably continue to do so.”
The Dow Jones Industrial Average fell 4.1 points, or 0.01%, to 33,513.55, the S&P 500 lost 1.19 points, or 0.03%, to 3,890.9 and the Nasdaq Composite lost 6.78 points, or 0. ,06.4% decreased to 21%.
The pan-European STOXX 600 index lost 0.57% while MSCI’s benchmark of global stocks fell 0.19%, after hitting a 3-week high on Monday.
Signs of slowing wage inflation from the December US jobs report released on Friday gave some confirmation that inflation had peaked.
However, with consumer price inflation still well above the central bank’s 2% target, two Fed officials issued a stark reminder Monday that interest rates will continue to rise, regardless of what investors have priced in.
San Francisco Fed President Mary Daly told the Wall Street Journal that she would focus on Thursday’s data and that both 25 and 50-basis-point hikes were options for her. Atlanta Fed President Raphael Bostic said his “core case” was for a rate cut this year or next.
On Tuesday, Fed Chairman Jerome Powell avoided talking about rate hikes during a speech in Sweden on Tuesday.
The dollar index increased by 0.155 percent and the euro increased by 0.01 percent and reached 1.0729 dollars.
The Japanese yen weakened 0.34% against the greenback at $132.31, even after data showed a pick-up in Tokyo inflation that could prompt the Bank of Japan to tighten monetary policy sooner.
Sterling was last at $1.2147, down 0.30% on the day.
In Treasuries, the benchmark 10-year note rose 11.7 basis points to 3.634%, from 3.517% late Monday.
The 30-year bond was last up 11.6 basis points at 3.7658%, up from 3.65%. The latest 2-year note rose 8 basis points to 4.2786% from 4.199%.
Oil prices were higher as commodity traders also awaited data to gauge the Federal Reserve’s plans to raise rates and the potential impact on the economy and demand.
A barrel of US crude oil recently rose 0.76% to $75.20 per barrel and Brent was at $80.09, up 0.55% on the day.
In precious metals,
It increased by 0.1 percent and became 1,873.30 dollars or an ounce. The price of American gold rose by 0.11 percent and reached 1874.80 dollars.
(Additional reporting by Sinéad Carew in New York, Amanda Cooper in London, Selena Li in Hong Kong; Editing by Muralikumar Anantharaman, Angus MacSwan Chizu Nomiyama, Alexandra Hudson)