Stocks struggled for direction Tuesday as investors looked ahead to Wednesday's critical inflation update and took in an onslaught of headlines from the tech sector.
Notably, mega-cap tech stock Apple (AAPL) continued its recent price struggles as the company unveiled its latest line of iPhones at an annual product event.
The bulk of today's attention swirled around expectations for tomorrow morning's release of the August Consumer Price Index (CPI). Many experts believe headline CPI accelerated in August as gas prices jumped. However, the core CPI reading, which excludes volatile food and energy prices, is expected to decline on an annual basis vs July's figure.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"This is one of the last pieces of key economic data ahead of the Fed's rate decision and I think it would take a shockingly hot number to push the Fed to hike next week," says Michael Reinking, senior market strategist at the New York Stock Exchange.
Indeed, futures traders are currently pricing in a 93% chance the Federal Reserve will keep interest rates unchanged at next week's meeting, according to CME Group.
Arm prepares to go public in blockbuster IPO
Tuesday's headlines were not solely centered on tomorrow's inflation data, though. Also in focus was Arm – the Softbank-owned chipmaker that was once a buyout target of Nvidia (NVDA) – given the company is set to go public this Thursday. Demand for what is arguably the most anticipated upcoming IPO of the year is so high that Arm stopped taking orders Tuesday – a day ahead of schedule.
The Arm IPO is expected to be priced tomorrow at a range of $47 to $51 per share, which would result in $5 billion in new capital for the company and a roughly $54.5 billion valuation.
However, David Trainer, CEO of New Constructs, a research firm powered by artificial intelligence, says this offering creates "a valuation that is completely disconnected from the company’s fundamentals."
Stay away from this IPO, Trainer warns investors, "as we see very limited upside ahead, as there are plenty of other companies in the tech sector that offer investors growth, but at a reasonable valuation."
Apple stock slips after September event
Also on investors' radar Tuesday was Apple (AAPL), which slid 1.7% as the company unveiled new products at its annual September event. In addition to the iPhone 15 series, the tech giant debuted its latest smartwatch iterations, including the Apple Watch 9.
Meanwhile, amid this week's relatively light earnings calendar, Oracle (ORCL) plunged 13.5% after the cloud software company revealed its results. While Oracle reported higher-than-expected fiscal first-quarter earnings of $1.19 per share, revenue of $12.45 billion fell short of estimates. Additionally, the company forecast lower-than-anticipated fiscal Q2 results.
As for the major indexes, the Dow Jones Industrial Average finished marginally lower at 34,645, while the S&P 500 (-0.6% at 4,461) and the Nasdaq Composite (-1.0% at 13,773) suffered bigger losses.
Related content
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Dow Adds 646 Points, Hits New Highs: Stock Market Today
It was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
