Highlights
Major stock indexes edged down for a second day on Tuesday with oil prices higher and big technology shares mostly weaker as the market awaits US inflation news on Wednesday. The Dow Jones industrial average and the S&P 500 both slipped 0.3 percent and the Nasdaq was off 0.6 percent. US bond yields and the dollar were flat to lower while oil prices edged up.
Oil prices rose on reports that US and Iran remain far apart on reopening the Strait of Hormuz, and as attacks on shipping in the Strait and elsewhere continued. Still, oil came off its highs on conflicting headlines suggesting some kind of US-Iran deal remains possible.
Activity was limited as the summer holidays reduce volume. Remaining market participants are cautious ahead of consumer price report due Wednesday and producer price data due on Thursday. Markets continue to price in a 50-50 chance that the Federal Reserve will proceed with a 25 basis point rate increase in September but chances are seen hinging in part on this week’s inflation readings.