Wall Street Reacts to Inflation Data Anticipation Amid Post-Election Volatility

Wall Street's main indexes remained steady as attention shifted to upcoming U.S. inflation data. Stocks anticipating gains under President-elect Trump saw mixed performances, with Tesla losing momentum. The Dow gained slightly, while crypto stocks pulled back. Upcoming inflation data will influence Federal Reserve's policy direction amid lower expectations for rate cuts.

Wall Street's principal indexes showed minimal movement on Tuesday after experiencing post-election gains. Investors are now focusing on crucial U.S. inflation data set to be released later this week, which is anticipated to provide more insights into the nation's economic and monetary policies.

The anticipated growth for certain stocks under President-elect Donald Trump's administration faltered. Tesla, which had surged close to 40% since November 5, decreased by 2.5%, affecting the consumer discretionary sector which dropped by 0.3%. In contrast, the Dow Jones Industrial Average climbed slightly, buoyed by gains in Honeywell prompted by activist investor Elliott Investment's major stake.

Traders are looking ahead to upcoming consumer price inflation data, followed by producer prices and retail sales reports, crucial for the Federal Reserve's policy guidance. Despite dialing back predictions of future interest rate reductions, there's still a robust expectation of a 25-basis-point cut at the Fed's December meeting.

(With inputs from agencies.)