US shares ended mixed and the dollar retreated from an 18-month high as investors positioned for September inflation data and reassessed the chances of another Federal Reserve rate rise this year.
US stocks ended a mixed session on Tuesday as investors positioned for the latest US consumer price data, while the dollar slipped from an 18-month high and traders weighed the prospect of one more Federal Reserve rise before year-end. The Vantage Markets analysis said the market backdrop remained shaped by firm oil prices, persistent inflation pressure and shifting central bank expectations, with attention turning to Wednesday’s September CPI release and the Federal Open Market Committee meeting later this month.
The Federal Reserve remained in focus after New York Fed President John Williams said he sees no need for a rate rise in 2027, according to a report from Investing.com that cited Bloomberg News. Williams also said inflation should ease towards the Fed’s 2% target next year, although he still viewed one more increase this year as appropriate. That message echoed the broader tone in markets, where traders appear to think the central bank may have room to stay patient unless the inflation data come in materially hotter than expected.
On Wall Street, the S&P 500 finished almost unchanged, while the Nasdaq and Dow Jones both edged lower. Energy shares led gains, while healthcare and financials lagged. Bank earnings brought a mixed start to the reporting season: JPMorgan Chase came in below expectations on earnings per share, Wells Fargo narrowly beat forecasts, Goldman Sachs posted a jump in net income as equities trading offset weaker bond trading, and Citigroup reported its strongest third-quarter revenues in a decade, according to the Vantage Markets note. In megacap technology, Nvidia recovered after a losing stretch and Apple hit another record high after unveiling new smart-home products.
The dollar’s pullback came as traders assessed whether the recent run-up in US rates and the greenback had gone too far ahead of the inflation print. The Vantage Markets commentary said headline CPI is expected to quicken on higher gasoline and energy costs, while core inflation may remain comparatively contained. That combination would likely keep the Fed in wait-and-see mode for now, even if markets still assign some chance of another hike before the end of the year. In other asset classes, gold steadied after a volatile session and silver extended losses, underscoring how closely markets are tied to the inflation outlook.
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