Wall Street Trades Flat On Mixed Producer Inflation; Meme Stocks See Wild Ride, Bitcoin Drops: What’s Driving Markets Tuesday?

Wall Street Trade Adjusts on Mixed Producer Inflation; Meme Stocks See Wild Ride, Bitcoin Falls: What’s Driving Tuesday Markets?

Wall Street is enjoying a quiet trading session in New York at noon, with all major indexes showing minimal movement. The latest producer inflation data gave mixed signals ahead of the highly anticipated consumer inflation report on Wednesday.

Fed Chairman Jerome Powell reiterated his view that US monetary policy will maintain the current interest rate for longer than previously anticipated, dispelling fears of new interest rate hikes.

President Joe Biden announced significant tariffs on Chinese imports; It imposed tariffs of 25% on steel and aluminum, 100% on electric vehicles produced in China, 25% on EV batteries, and 50% on semiconductors from China.

The US dollar index (DXY) and the Invesco DB USD Index Bull Fund ETF (NYSE: UUP) fell 0.2%, reacting negatively to producer inflation readings and Powell’s comments.

Treasury yields softened slightly as investors expected two interest rate cuts from the Fed by the end of the year.

All major indexes, including the S&P 500, Dow Jones Industrial Average and Nasdaq 100, traded broadly flat throughout the day.

Small caps tracked by the iShares Russell 2000 ETF (NYSE:IWM) rose 0.8%, on track for their highest close since the beginning of April.

GameStop Corp. Momentum in meme stocks continued to remain wild, with shares of AMC Entertainment Holdings Inc. (NYSE:GME) and AMC Entertainment Holdings Inc. (NYSE:AMC) rising 22% and 18%, respectively.

In the commodity market, gold rose 0.8%, while oil prices fell 1.4% due to concerns that some OPEC+ members want to increase production.

Bitcoin (CRYPTO: BTC) fell 2.5% to $61,400.

Tuesday’s Performance in Major US Indices and ETFs

Major Indices

Price

1 day %change

Russell 2000

2,082.41

0.8%

Nasdaq 100

18,200.03

0.0%

Dow Jones

39,393.40

-0.1%

S&P 500

5,215.80

-0.1%

Updated at 1:12 PM EDT

The SPDR S&P 500 ETF Trust (NYSE:SPY) was flat at $520.94, while the SPDR Dow Jones Industrial Average (NYSE:DIA) was flat at $394.37 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) was down 0.1%. increased to $443.41. According to Benzinga Pro data.

By sector, the Real Estate Select Sector SPDR Fund (NYSE:XLRE) outperformed, up 0.5%. The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) was the top laggard, down 0.6%.

Tuesday’s Stock Carriers

Shares of Insulet Corp. (NASDAQ:PODD) rose 4.6% on Tuesday even as short seller Blue Orca Capital announced it had taken a short position in the company’s stock.

Plug Power Inc. (NASDAQ:PLUG) gained more than 20% following the announcement that it had secured a $1.66 billion government loan to support clean hydrogen projects, leading to the stock’s biggest single-day gain in seven years.

SunPower Corp. (NASDAQ:SPWR) gained 44% on the back of the meme stock frenzy.

Delcath Systems Inc. (NASDAQ:DCTH) rose over 30% in response to the company’s quarterly results.

Other stocks reacting to earnings included Home Depot Inc., down 1.1%. (NYSE:HD); 18% increase in Holding AG (NYSE:ONON); International Game Technology (NYSE:IGT) was up 2.5% and Navios Maritime Partners LP (NYSE:NMM) was down 6%.

The story continues

Read Now: Expect a Rate Cut, Not a Recession: Fund Managers Expect the Most Rise in Stocks in More Than 2 Years

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