US stocks trade lower as market limps toward February loss

Traders work on the floor at the New York Stock Exchange.Thomson Reuters

• Stocks fell on Tuesday, the last day of market action in February.

• Wall Street's major indexes were on course to finish lower for the month.

• Inflation is proving sticky, driving investors to push stocks down and kick bond yields higher.

Stocks were down Tuesday as investors began to wrap up likely losses for February, set forth by pressure on the Federal Reserve to keep interest rates elevated as inflation remains at still-hot levels.

Investors at the end of the month were considering earnings reports. Among them, Target was in focus after the retailer's holiday-quarter results came out ahead of expectations, but the company signaled slowing sales.

Wall Street's main indexes were pulling back for the month after starting in rally mode in January. But a string of upside surprises for consumer and wholesale inflation data has stoked speculation that monetary policymakers this year will jack up the country's benchmark interest rate to perhaps as high as 6%.

"Investors are understandably cautious to invest money into the markets, given the cost-of-living crisis around the world and the stickiness of inflation. While we have seen signs of peak inflation and the economy has held its own better than hoped, rising bond yields continue to pose a big threat to stocks and other risk assets," Fawad Razaqzada, market analyst at City Index, wrote in a Tuesday note.

Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday: 

•  S&P 500: 3,975.59, down 0.17%

• Dow Jones Industrial Average: 32,800.39, down 0.27% (88.70 points)

• Nasdaq Composite: 11,453.05, down 0.12%

Here's what else is happening today:

• Oil prices are looking at a fourth monthly loss as traders focus on the prospect the Federal Reserve will keep hiking interest rates.

• Tesla and Elon Musk were reportedly sued by shareholders over Autopilot safety risks after a $38 billion drop in market value.

• Robinhood said it was subpoenaed by the SEC soon after FTX crashed.

In commodities, bonds, and crypto:

• West Texas Intermediate crude gained 2.3% at $77.43 per barrel. Brent crude, the international benchmark, rose 1.5% to $83.66.

• Gold fell 0.5% to $1,815.30 per ounce.

• The 10-year Treasury yield rose 4.7 basis points to 3.97%.

• Bitcoin edged up 0.2% at $23,432.10.

 

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