Tuesday saw a decline in US stocks as investors waited for the release of a crucial inflation report that could provide insight into the future direction of interest rates. 

All three major indexes have given up earlier session gains by midmorning trading. Leading the decline was the Dow Jones Industrial Average (^DJI), which dropped more than 250 points, or around 0.7%.

Consumer Price Index Disclosed

The tech-heavy Nasdaq Composite (^IXIC) fell around 0.3%, while the benchmark S&P 500 (^GSPC) fell about 0.6%. Ahead of Wednesday’s Consumer Price Index release, which is anticipated to be a turning point for the market following a robust first quarter, stocks have become stuck.

Given the ongoing signs of strength in the US economy, investors are growing less and less confident that the Federal Reserve will implement the three rate cuts it has projected for this year.

This has made the March CPI report even more important, and any indication that inflation has started to decline once more will be interpreted as a call for a June policy change.

The 10-year Treasury yield (^TNX) has risen to over five-month highs due to diminishing expectations of a rate cut, which is another possible obstacle for equities.

Rising Metal Prices

The 5% level is considered to be the main area of concern. On Tuesday, the benchmark yield decreased by roughly 5 basis points to hover around 4.4%.

In the meantime, worries about a feed-through effect on inflation have been raised by rising metals prices. Key industrial input copper (HG=F) gained roughly 0.7% early on Tuesday, extending a 10% year-to-date advance that has sparked rumors of a new bull market.

Gold (GC=F) continued to rise past $2,380 an ounce, setting yet another new record during this surge.

The beginning of the first quarter earnings season, which begins in earnest on Friday with results from companies like Citigroup (C), JPMorgan (JPM), and Wells Fargo (WFC), is another catalyst in the near future.