Equity markets wavered for the 5th consecutive trading day on Tuesday as participants waited on critical inflation data. The latest read on the PCE price index is due Thursday and will lead the market to its next move. The data is expected to cool compared to the prior month and previous year, confirming the idea the FOMC is done raising rates. The question is if the data will indicate higher rates for longer or point to the first interest rate cuts since 2020.

Another cause for market concern is OPEC+. The cartel is set to meet again on Thursday and is expected to confirm additional production cuts. The cartel is working hard to keep the supply/demand imbalance tilted toward higher prices but non-OPEC production continues to rise. If the cartel is successful with its plans it could underpin inflation and keep the FOMC in a hawkish position regardless of the PCE Data.