US equity indexes experienced a mixed trading session while government bond yields and the dollar exhibited upward movement due to cautious market sentiments prior to an expected increase in month-over-month headline inflation. The S&P 500, Nasdaq Composite and Dow Jones Industrial Average displayed little change, trading at 6,052.2, 19,736.5, and 44,418.7, respectively, by midday on Tuesday.
The sectors of communication services and consumer discretionary emerged as the leading gainers during intraday trading, while real estate and utilities faced considerable declines. The month-over-month headline inflation rate is projected to have risen by 0.3% in November, up from 0.2% in October, based on a survey compiled by Bloomberg ahead of the data release on Wednesday.
Notably, month-over-month core inflation—excluding the more volatile food and energy prices—remains unchanged, and the headline and core year-over-year inflation rates also held steady last month, per the survey. The US Dollar index showcased a rise of 0.4%, reaching 106.59. "The dollar edged higher ahead of a crucial inflation report this week that could influence the Federal Reserve's decisions at its monetary policy meeting on December 18," stated a note from D.A.
Davidson. In the treasury market, most US Treasury yields saw an increase intraday, with the US 10-year yield rising by 3.5 basis points to 4.23%, while the two-year yield climbed by 3.9 basis points to reach 4.17%. In the corporate sector, Oracle's shares fell by 8% intraday, making it the worst performer on the S&P 500 after the company reported fiscal Q2 non-GAAP earnings and revenue that fell short of analyst expectations.
Similarly, MongoDB experienced a significant decline of 13% intraday, despite posting better-than-expected Q3 results and raising its full-year outlook. In other news, West Texas Intermediate crude oil futures rose by 0.8%, reaching $68.92 per barrel..