The U.S. stock market opened slightly lower on Tuesday after the release of the latest inflation report. The Dow Jones Industrial Average and the Nasdaq Composite both opened down 0.2%.
The inflation report, due Tuesday, has the potential to deliver some bad news. According to a U.S. economist, the January Consumer Price Index (CPI) report will “see a reacceleration in inflation.”
Traders are currently infatuated with inflation, as it can have a significant impact on stock prices. However, the latest data shows that U.S. inflation has eased for the seventh consecutive month.
The latest report from the Labor Department found that the CPI dropped 0.3% in January, which is the largest decline since April 2020. This is a sign that inflation is slowing and could be good news for stock prices.
Overall, the stock market is in a wait-and-see mode as investors await further developments on the inflation front. Until then, stock prices could remain volatile.