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  • US stocks ended mixed Tuesday ahead of a slew of corporate earnings and key inflation data.
  • The S&P 500 notched its fifth straight loss and the Nasdaq dropped more than 1%.
  • Stocks could see another 5% sell-off Thursday if September inflation clocks in above 8.3%, JP Morgan warned.

US stocks ended Tuesday mixed as investors struggled to regain momentum ahead of an earnings deluge and the hotly anticipated inflation report due on Thursday. The S&P 500 saw its fifth-day of straight losses. Meanwhile, the Dow Jones Industrial Average briefly rose 200 basis points before settling at the close, ending the day in the green. 

The 10-year Treasury yield edged higher by four basis points as recession fears continue to weigh on the market. But Goldman Sachs and Ned Davis Research said the Fed isn’t expected to lighten up on rate hikes just yet, and the strength of the US dollar means there should be fewer sales beats from companies this quarter, Goldman warned.

Thursday’s inflation report will be a key moment for US stocks, JPMorgan said Tuesday in a note. If Consumer Price Index data clocks in above 8.3%, markets could see another swift 5% sell-off, the bank said, with other shocks to the market potentially bringing the S&P 500 down to around 3,000 by the end of the year.   

Here’s where US indexes stood at the 4:00 p.m. closing bell on Tuesday: 

Here’s what else happened today:

  • The Fed won’t pivot from its rate hiking regime until one of three things happen, Ned Davis Research told investors.
  • The Bank of England should expand its emergency bond-buying program to manage volatility in the UK’s debt markets, a UK pensions group said.
  • Putin’s “gas blackmail” on Europe is failing, as a LNG revolution is allowing Europe to become more independent from Russia, a Yale professor said.
  • But LNG ships are becoming more expensive and now cost a record $400,000 a day as Europe scrambles to secure gas supplies. 

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