- US stocks fell Tuesday with oil prices and the tech sector in focus.
- Investors are gearing up for Wednesday's July inflation report.
- Micron and Novavax were among Tuesday's decliners.
US stocks fell Tuesday as investors considered financial warnings from the tech sector while they braced for this week's high-profile report on inflation as the Federal Reserve sets its sights on further interest-rate hikes.
Equities struggled as oil prices swung higher following news that Russia has suspended oil exports through the southern segment of its Druzhba pipeline, a move that could deepen Europe's energy crisis.
Meanwhile, tech stocks sagged with Micron becoming the latest chip maker to warn that it's quarterly revenue projections may fall short of Wall Street's targets, citing in part supply chain problems. Nvdia on Monday said gaming-sector weakness will slice into its second-quarter revenue. Also in focus was Novavax, plunging as it halved its quarterly sales outlook as demand for its COVID vaccine slows.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 4,128.48, down 0.28%
- Dow Jones Industrial Average: 32,802.45, down 0.09% (30.09 points)
- Nasdaq Composite: 12,530.81, down 0.9%
Investors sifted through corporate updates before Wednesday's July inflation report. Economists broadly expect the headline reading to cool to 8.7% after June's increase to 9.1%. A number of Fed officials have recently said they are prepared to keep ratcheting up rates to bring down inflation toward the bank's 2% target.
"Amid fears of the world's largest economy nearing recession, however, the latest blowout non-farm payroll number from last week has, at least for the moment, put such fears to bed," said Richard Hunter, head of markets at Interactive Investor, in a note. "The labor market is apparently signaling that the economy remains generally robust, meaning in turn that it is strong enough to withstand further rate rises without tipping into recession."
The S&P 500 was moving toward its fourth straight loss, while the Nasdaq Composite was poised for its third consecutive decline. The Dow Jones Industrial Average, meanwhile, has risen over the past two sessions.
Around the markets, oil prices advanced. West Texas Intermediate crude rose 1.2% to $91.85 per barrel. Brent crude, the international benchmark, dropped 1.2% to $97.83.
Warren Buffett's Berkshire Hathaway has raised its stake in Occidental Petroleum to more than 20%.
Norway has drawn up plans to cut energy supplies to Europe, pushing power prices to record highs.
Gold gained 0.4% at $1,758 per ounce. The 10-year Treasury yield fell 3 basis points to 2.8%.
Bitcoin fell 2.2% to $23,281.04.