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Traders on the floor of the New York Stock Exchange.
Ted Shaffrey | AP
Stocks were little changed Tuesday as traders looked for clarity on future Federal Reserve policy moves after April’s producer price index rose more than expected.
The Dow Jones Industrial Average gained just 6 points. The S&P 500 and Nasdaq also posted marginal moves.
The producer price index reading for April came in above estimates, putting a damper on expectations that the Federal Reserve would begin cutting rates later this year as inflation weakens. The PPI gained 0.5% from April, higher than the 0.3% that economists polled by Dow Jones had anticipated.
Bond yields ticked higher. Market moves were contained as the March wholesale prices reading was revised down to show a 0.1% decline, easing some of the inflation concerns. Traders may also be hesitant to overreact to this report ahead of the more closely followed consumer price index, due to be released Wednesday.
The Dow is coming off its first losing session in nine, snapping its longest winning streak since December. The S&P 500 also inched lower, while the Nasdaq rose slightly. A report from the New York Federal Reserve showed that consumers’ expectations for inflation over the short and long term grew in April, putting pressure on stocks.
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