US stocks reflect gains despite weak inflation data. Trump’s tariffs are the focus of Investing.com

Investing.com – US stocks fell on Tuesday after rising earlier in the day, despite weaker-than-expected inflation data as well as easing fears of excessively disruptive trade tariffs under President-elect Donald Trump.

At 11:45 EST (16:45 GMT), the index was down 0.1%, the index was down 0.3%, and the index was down 0.4%.

US Producer Price Index is colder than expected

The United States rose at a slower-than-expected rate in December, with the producer price index rising 0.2% month-on-month in December, according to data released earlier Tuesday. Economists had expected the reading to match November’s pace of 0.4%.

Compared with the previous year, the Producer Price Index rose 3.3%, accelerating from 3.0% in the previous month but below estimates of 3.5%.

The data comes before Wednesday, and will provide more signals on interest rates after strong payrolls data released last week reinforced bets that the pace of Fed rate cuts will slow this year.

Trump Team Considers Gradual Tariff Increase – Bloomberg

Bloomberg reported on Monday that Trump’s economic team is considering a program of gradual increases in import tariffs over the coming months, with the proposal aimed at boosting leverage with trading partners and preventing a sudden increase in inflation.

The plan – which has not yet been presented to Trump – includes a timetable for increasing tariffs by 2% to 5% per month, and will be implemented under the executive authority of the International Emergency Economic Powers Act.

Trump is scheduled to take office on January 20, and has pledged to impose heavy trade tariffs on several major economies, especially China, from “day one” of his term. He pledged to impose a tariff ranging from at least 10% to 20% on all imported goods, and a 60% tariff on China.

Recent reports said he may also declare a national economic emergency to implement this plan.

Fears of higher import duties have sparked increased risk aversion on Wall Street, especially since Federal Reserve officials have also warned that the duties could support inflation and keep interest rates high in the long term.

To lead the earnings season

Earnings season is also set to begin in earnest on Wednesday, with prints due from several major Wall Street banks – including JPMorgan Chase (NYSE:), Wells Fargo (NYSE:) and Goldman Sachs (NYSE:) and Citigroup (New York Stock Exchange:).

Elsewhere, Lululemon Athletica (NASDAQ:) rose after the athleisure company raised its holiday earnings and revenue forecasts, while KB Home (NYSE:) rose 3% after the homebuilder’s fourth-quarter results beat analysts’ estimates in the US. Top and bottom line.

Raw hands return to winnings

Oil prices fell, retreating from four-month highs triggered by new US sanctions on Russian oil exports and concerns about supply disruptions.

By 11:45 EST, US crude futures (WTI) were down more than 1% to $76.33 per barrel, and the Brent contract was also down 1% to $80.00 per barrel.

Oil rose strongly over the past two sessions after the Biden administration introduced its most comprehensive sanctions package to date, aimed at reducing Russian oil and gas revenues.

These developments are expected to significantly disrupt Russian oil exports, forcing major importers such as China and India to look for alternative suppliers in regions such as the Middle East, Africa and the Americas.

(Ambar and Eric contributed to writing this article.)