Wall Street main indexes red; Dow, off ~0.5%, leads losses
Financials weakest S&P 500 group; Energy leads gainers
Euro STOXX 600 index falls ~0.3%
Dollar, gold gain; bitcoin up ~2%, crude rises >2.5%
US 10-Year Treasury yield edges down to ~4.18%
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US EQUITIES FALL WITH FINANCIAL SECTOR DRAGGING
The Dow .DJI is leading losses on Wall Street on Tuesday after the latest consumer inflation readings rose in line with expectations, but financial stocks are weak after JPMorgan Chase's JPM.N quarterly update.
The fourth quarter earnings season kicked off with JPMorgan reporting a profit that exceeded analysts' estimates as its traders cashed in on volatile markets. But while hopes had been high for investment banking, the company's CFO Jeremy Barnum said some deals pushed to 2026 had affected Q4 investment banking fees. Payment networks Visa V.N and Mastercard MA.N are also big drags after falling already on Monday due to Trump's vow to cap credit card rates.
On the data front, U.S. consumer prices increased as expected in December as the distortions related to the government shutdown that had artificially lowered inflation in November unwound, cementing expectations the Federal Reserve would leave interest rates unchanged this month.
Some investors saw the data as a green light for the Fed to cut rates further, but Alberto Musalem, who runs the St. Louis Federal Reserve Bank said it is unadvisable to have an accommodative policy at this time.
While Carl B. Weinberg, Chief Economist at High Frequency Economics noted that the data "does NOT show a big jump in prices after the tariffs that everyone was afraid of" and suggested that it "should reduce anxiety about inflation risks for the moment."
"However, the big monthly jump in food prices does not reflect any passthrough from the tariff reductions on food imports implemented in mid-November. That is a surprise. Are prices for food really that sticky?" Weinberg said.
Here is your morning snapshot from 10:24 a.m ET/ 1524 GMT:
(Sinéad Carew)
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EARLIER ON LIVE MARKETS:
DEUTSCHE BANK PREFERS EUROPEAN STOCKS DESPITE US SHORT-TERM UPSIDE ON BETTER RISK-RETURN CLICK HERE
WALL STREET SHRUGS AS SAYLOR'S STRATEGY KEEPS STACKING BITCOIN CLICK HERE
S&P 500 FUTURES LITTLE CHANGED AFTER COOLER-THAN-EXPECTED CORE CPI CLICK HERE
EUROPEAN GAMING STOCKS: AN AREA OF OPPORTUNITY CLICK HERE
LUXURY EYES RECOVERY AFTER CHALLENGING 2025 CLICK HERE
MORE OF THE SAME CLICK HERE
EUROPE BEFORE THE BELL: FUTURES HIGHER, EYES ON CPI CLICK HERE
YEN'S PAIN IS NIKKEI'S GAIN AS RECORDS TUMBLE CLICK HERE
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