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U.S. stock indexes gave up earlier gains Tuesday, falling back into their September doldrums despite a better-than-feared inflation reading.
The Dow Jones Industrials tumbled 164.01 dropped 79.41 points to 34,705.62.
The S&P 500 shed 7.1 points to 4,461.63.
The NASDAQ Composite gained 20.65 points, to 15,126.23.
Stocks linked to the economic recovery led the turn lower 30 minutes after the open. Bank of America led financial shares lower. General Electric took industrial shares into the red. Investors crowded into some of their favorite tech bastions with Microsoft and Amazon higher.
The August consumer price index, while still showing a significant jump in inflation, came in less than feared. August CPI jumped 0.3% month-to-month, or 5.3% from a year earlier, below the 0.4% increase and 5.4% annual gain expected respectively by economists polled by Dow Jones.
The less volatile core reading excluding food and energy costs showed just a slight gain, up 0.1% and below the 0.3% consensus increase expected by economists.
The major averages are all down at least 1% for September, and RBC doesn’t see the S&P 500 surging into the end of the year. The firm raised its year-end target for the benchmark index to 4,500 on Monday, up from a prior target of 4,325. The new target is less than 1% above where the index closed on Monday. The firm also introduced a 2022 year-end target of 4,900.
Prices for 10-Year Treasurys jumped, lowering yields to 1.29% from Monday’s 1.33%. Treasury prices and yields move in opposite directions.
Oil prices took on 27 cents to $70.72 U.S. a barrel.
Gold prices picked up $12.00 to $1,806.400 U.S. an ounce.
