Investing.com -- U.S. stocks retreated Tuesday, handing back some of the previous session’s tech-led gains amid caution ahead of the release of key inflation data later in the week.
By 12:05 ET (17:05 GMT), the Dow Jones Industrial Average was down 170 points, or 0.45%, S&P 500 traded 6 points, or 0.1%, lower and the NASDAQ Composite had risen 19 points or 0.1%.
The main equity indices closed higher on Monday, boosted by strong gains from chip designer and artificial intelligence darling Nvidia (NASDAQ:NVDA), which helped the tech-heavy Nasdaq Composite post its best day since mid-November.
Caution ahead of CPI release
However, investors still remain very cautious ahead of Thursday’s release of the latest U.S. inflation release, which should offer more clarity over what the U.S. central bank intends to do with interest rates in the first quarter of the new year.
The crucial core figure is rising by 0.2% month-on-month, dragging the annual pace down to 3.8%, a level not seen since mid-2021.
Data released earlier Tuesday showed that the U.S. trade deficit unexpectedly narrowed in November as imports declined.
Boeing remains in spotlight
In the corporate sector, Boeing (NYSE:BA) stock initially fell 1.3% before training some of its initial losses after loose parts on some grounded models of the plane manufacturer's 737 Max 9 jet have reportedly been discovered by both United Airlines and Alaska Airlines. The stock is currently down 1%.
Match Group (NASDAQ:MTCH) stock surged over 10% following a report by the Wall Street Journal indicating that activist investor Elliott Investment Management has amassed a stake of approximately $1 billion in the dating app company. However, it has retreated somewhat, now up around 3%.
Juniper Networks (NYSE:JNPR) soared over 22% after the WSJ reported that Hewlett Packard Enterprise (NYSE:HPE) is reportedly in advanced negotiations to acquire the tech company for approximately $13 billion.
Tilray (NASDAQ:TLRY) stock rose 5.5% before tumbling more than 8% after the cannabis company reported a strong performance in its marijuana and beverage divisions, boosting revenues to a new high.
Crude rebounds ahead of API inventories
Oil prices rose Tuesday, rebounding after the previous session’s sharp losses, as traders digested concerns over sluggish demand as well as Middle East tensions.
By 12:10 ET, the U.S. crude futures traded 2.4% higher at $72.44 a barrel, while the Brent contract climbed 2.2% to $77.80 a barrel.
Both crude benchmarks had fallen over 3% on Monday as sharp price cuts by top exporter Saudi Arabia had raised worries about slowing crude demand, particularly from major Asian consumers.
However, the ongoing conflict between Israel and Hamas, and the worry that this could grow into a regional crisis that could disrupt Middle Eastern oil supplies, remains an underlying support for the crude market.
The latest reading of U.S. crude inventories from industry body American Petroleum Institute is due later in the session, ahead of Wednesday’s official data.
Additionally, gold futures rose 0.2% to $2,036.90/oz, while EUR/USD traded 0.1% lower at 1.0934.
(Oliver Gray contributed to this article.)