The S&P 500 rose 0.3% after its first loss in six days. The Dow Jones Industrial Average rose 37 points, or 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.6% higher.“Early buying interest reflects more of the back-and-forth of a market playing the seasonal game while remaining mindful of high valuations and concentration risk,” said Briefing.com analyst Patrick O’Hare.
He added that investors were keeping an eye on the U.S. Treasury market, a day after a jump in U.S. Treasury yields contributed to stock market losses.
Bets that the U.S. central bank will ease monetary policy for a third straight time next week have risen since several Fed policymakers expressed concern about labor market weakness.
These comments are compounded by figures showing that the economy continues to weaken, while inflation appears to have stabilized for the time being.
However, the rise in long-term US government bond yields was an indication that investors see inflation picking up in the future.
“Collectively, the Fed appears confident that inflation, while still high, has peaked,” said Trade Nation analyst David Morrison. “The market doesn’t seem to agree.”
Key European markets were flat or higher after a largely positive session in Asia.
Official data on Tuesday showed eurozone inflation rose to 2.2 percent in November, slightly off the European Central Bank’s two percent target.
The ECB will announce its interest rate decision on December 18.
The figures “come at a time when some have argued we could see yet another ECB cut, although there is a good chance their easing cycle is over,” said Joshua Mahony, chief market analyst at Scope Markets.
Meanwhile, the OECD raised its growth estimates for major economies, especially the United States and the euro zone, saying the global economy has been “surprisingly resilient” in the face of uncertainty and new trade barriers.
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