US stocks wavered on Tuesday as investors geared up for a looming consumer inflation report seen as crucial to determining the size of the first US interest-rate cut in years. The benchmark S&P 500 gave up earlier gains to hug the flatline by mid-morning trading while tech-heavy Nasdaq Composite ticked up roughly 0.2%. The Dow Jones Industrial Average saw losses escalate, with the index falling 0.5%, or about 200 points.
The countdown is on to the August consumer inflation reading on Wednesday, which could be decisive for rate-cut expectations after the monthly jobs report left the market guessing. Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut With the Fed's policy decision just days away, investors are still unsure whether a 25- or 50-basis-point cut is on the way.
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