The Dow is flat, giving up gains ahead of the expected inflation report.

The Dow Jones Industrial Average was little changed on Tuesday, giving up earlier gains after a softer-than-expected November consumer prices report on inflation expectations.

The Dow added 8 points, or 0.02%, after gaining more than 700 points earlier in the session. The S&P 500 rose 0.42%, while the Nasdaq Composite added 0.57%.

Stocks rose early on Tuesday after the consumer price index rose just 0.1% from last month, and rose 7.1% from a year ago, the Labor Department reported on Tuesday. Economists surveyed by Dow Jones were expecting a 0.3% monthly increase and a 7.3% 12-month increase. Excluding volatile food and energy prices, core CPI rose 0.2 percent on the month and 6 percent on the year, compared with estimates of 0.3 percent and 6.1 percent.

However, as the day went on, major indices were off their best levels. Investors were awaiting the Federal Reserve’s next rate hike decision, which is expected at the end of its two-day policy meeting on Wednesday. Traders settled for a 50-basis-point increase, down slightly from the previous four increases. (1 basis point equals 0.01 percent)

“Even though the inflation inputs going into that Fed meeting are slightly better, we don’t know for sure if the Fed will raise it by 50 basis points, if they raise their target rate. So we’ve shifted gears quickly. Art Hogan, market strategist at B. Riley Financial, has gone into ‘wait and see’ mode for the Fed meeting tomorrow. .

The 10-year Treasury yield fell 12 basis points to below 3.5% after the CPI report. Energy stocks led the gains as shares of Chevron and ConocoPhillips each rose more than 2 percent. Tech stocks, which have been hit hardest by rising inflation and rates in 2022, also rallied. Shares of Meta and Google-parent Alphabet were up 3% and 1%, respectively.

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