U.S. Stocks Brace for Inflation Data Amid Record Highs
U.S. stocks poised for a muted start focus on upcoming inflation data to gauge economic policy. Major indexes hit record highs, and expectations are set for tax cuts under President-elect Trump's administration. Market reactions reflect anticipation, with some stocks retracting recent gains.
U.S. stocks appeared set for a tempered opening on Tuesday as the financial world turned its attention to crucial inflation data expected later this week. The data is anticipated to provide more clarity on the country's economic and monetary policy outlook.
Following a session where the major indexes closed at unprecedented levels, investors remain optimistic about potential tax reductions and deregulation under President-elect Donald Trump's leadership. Despite this, several stocks that previously surged are now retreating; notably, Tesla decreased by 1.8% in premarket trading after a dramatic increase of nearly 40% since November 5.
The small-cap Russell 2000 futures lost 0.6%, while shares in Trump Media & Technology Group declined by 5.1%. Some cryptocurrency stocks softened as Bitcoin pulled back after nearly reaching the $90,000 milestone. Analysts await consumer price inflation data due on Wednesday, providing insight on the Federal Reserve's policy direction.
(With inputs from agencies.)
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