NEW YORK (AP) — U.S. stock indexes drifted lower in the runup to the highlight of the week for the market, the latest update on inflation. The S&P 500 slipped 0.3% Tuesday and marked its first back-to-back losses in three weeks. The Dow Jones Industrial Average fell 0.3%, and the Nasdaq composite also fell 0.3%. Oracle dragged on the market after reporting weaker growth than analysts expected. Treasury yields rose in the bond market ahead of Wednesday’s inflation report, which will be among the final big pieces of data before the Federal Reserve’s meeting on interest rates next week.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — U.S. stock indexes are drifting lower Tuesday in the runup to the highlight of the week for the market, the latest that’s coming on Wednesday.
The S&P 500 dipped by 0.2% in late trading, a day after . The index is on track for its first back-to-back losses in more than three weeks, as momentum slows following a big rally that has it on track for one of its .
The Dow Jones Industrial Average was down by 7 points, or less than 0.1%, with roughly an hour remaining in trading, and the Nasdaq composite fell 0.3%.
Tech titan Oracle dragged on the market and sank 7.8% after reporting growth for the latest quarter that fell just short of analysts’ expectations. It was one of the heaviest weights on the S&P 500, even though CEO Safra Catz said the company saw record demand related to for its cloud infrastructure business, which trains models.
AI has been a big source of growth that’s helped many companies’ stock prices skyrocket. Oracle’s stock had already leaped nearly 81% for the year coming into Tuesday, which raised the bar of expectations for its profit report.
C3.ai fell 2.1% despite reporting a smaller loss for the latest quarter than analysts expected. The AI software company increased its forecast for how big a loss it expects to take this fiscal year from its operations.
In the bond market, Treasury yields ticked higher ahead of Wednesday’s report on the inflation that U.S. consumers are feeling. Economists expect it to show roughly similar increases as the month before. That and a report on Thursday about inflation at the wholesale level will be the final big pieces of data the Federal Reserve will get before its meeting next week, where many investors expect the year’s third cut to .
The Fed has been from a two-decade high since September to lift the slowing jobs market, after bringing inflation nearly down to its 2% target. Lower rates would help give support to the economy, but they could also provide more fuel for inflation.
The yield on the 10-year Treasury rose to 4.22% from 4.20% late Monday.
Even though the Fed has been cutting its main interest rate, and have been volatile since the autumn. That has hampered the housing industry, and homebuilder Toll Brothers’ stock fell 5.2% even though it beat analysts’ expectations for profit and revenue in the latest quarter.
CEO Douglas Yearley Jr. said the luxury builder has been seeing strong demand since the start of its fiscal year six weeks ago, an encouraging signal as it approaches the beginning of the spring selling season in mid-January
Elsewhere on Wall Street, Alaska Air Group soared 13.6% after raising its forecast for profit in the current quarter. The airline said demand for flying around the holidays has been stronger than expected. It also approved a plan to buy back up to $1 billion of its stock, along with .
Boeing climbed 5.2% after saying , the 737 Max, for the first time since 33,000 workers began a that ended in early November.
Vail Resorts rose 2.7% after the ski resort operator reported a narrower first-quarter loss than expected in what is traditionally its worst quarter.
In stock markets abroad, indexes were mixed in China after the world’s second-largest economy said its rose by less than expected in November. Stocks rose 0.6% in Shanghai but fell 0.5% in Hong Kong.
___
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Stan Choe, The Associated Press
