The S&P 500 closed nearly unchanged while the Nasdaq dipped after a volatile session on Tuesday as investors gauged inflation data and braced for quarterly earnings reports to justify stock valuations and the strength of the U.S. economy.

Stocks oscillated between gains and losses throughout the day. Equities received an initial lift from a Labor Department report that showed the producer price index rose less than expected in December, although the report failed to materially affect expectations about the Federal Reserve's likely path of monetary policy this year.

But early gains evaporated as investors awaited Wednesday's consumer price index reading, which will further shape expectations for inflation and the Fed.

According to preliminary data, the S&P 500 (.SPX), gained 6.49 points, or 0.11%, to end at 5,842.71 points, while the Nasdaq Composite (.IXIC), lost 43.71 points, or 0.23%, to 19,044.39. The Dow Jones Industrial Average (.DJI), rose 220.67 points, or 0.52%, to 42,515.72.

The market is pricing in about 29 basis points in rate cuts from the Fed by the end of 2025, according to LSEG data, with expectations for a cut of at least 25 bps not rising above 50% until the June meeting.

Source : Reuters