Investing.com – Market Update

The S&P 500 closed lower for the second consecutive session as the tech sector remains volatile, despite a jump in tech heavyweight Alphabet just before key inflation data.

At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average fell 142 points, or 0.3%, while the S&P 500 index declined by 0.3% and the NASDAQ Composite decreased by 0.2%.

Oracle Pressures Tech Sector, but Alphabet Shines

Oracle (NYSE:ORCL) dropped over 6%, negatively impacting the broader tech sector after the cloud firm’s fiscal Q2 earnings fell short of lofty street expectations amid increasing competition.

In contrast, Alphabet Inc Class A (NASDAQ:GOOGL) was a bright spot in tech, rising more than 5% after launching its Willow quantum chip.

CPI Data Awaited for More Rate Cues

The focus this week is on the upcoming US consumer price index (CPI) inflation data due on Wednesday, which could impact the Federal Reserve’s monetary policy meeting later this month.

Headline CPI is expected to rise slightly to 2.7% from 2.6% year-on-year, while core CPI, excluding volatile food and energy items, is anticipated to remain at 3.3%.

While inflation had consistently decreased earlier in 2024, it has shown more stickiness in recent months due to the resilience of the US economy, creating uncertainty regarding the interest rate outlook.

Markets continue to anticipate a 25-basis-point rate cut by the Federal Reserve next week, but the long-term outlook for rates has become more uncertain, particularly with incoming President Donald Trump’s inflationary policies coming into play.

Eli Lilly Slips Despite Buyback, Dividend Hike; Alaska Soars on Guidance; JPMorgan Ends Lower Despite Upbeat Guidance

Eli Lilly (NYSE:LLY) saw its stock end just below the flatline even after announcing a new $15 billion share buyback and increasing its dividend.

Alaska Air (NYSE:ALK) stock surged by 13% after the airline raised its fourth-quarter profit forecast, driven by strong travel demand and improved pricing. The airline also provided full-year 2025 earnings guidance that exceeded Wall Street estimates.

JPMorgan Chase & Co (NYSE:JPM) closed lower despite the investment bank forecasting better-than-expected net interest income for Q4 and the upcoming year.

*(Peter Nurse, Ambar Warrick contributed to this article.)