Wall Street was abuzz with cautious optimism on Monday as traders eagerly awaited the crucial February consumer price inflation report, which could have significant implications for the market moving forward.

The possibility of lower-than-expected inflation numbers had investors hopeful for potential Federal Reserve rate cuts, which could lead to a market rally. On the other hand, higher-than-expected inflation could trigger a sell-off.

The positive earnings reaction for Oracle Corp. was expected to give a boost to the tech sector, providing some much-needed relief in a day marked by nervousness about the upcoming inflation report and its potential impact on monetary policy.

The major indices ended the session mixed after experiencing initial losses, with the Nasdaq and S&P 500 closing lower while the Dow Industrials managed a slight gain. Small-cap stocks underperformed their larger counterparts, and various sectors such as real estate, industrials, IT, consumer discretionary, communication services, and healthcare closed in the red.

However, sectors like energy, materials, utilities, financials, and consumer staples gained ground, reflecting a mixed market sentiment.

Comerica Chief Investment Officer John Lynch noted that the strong start to the year bodes well for the remainder of the year, but analysts cautioned about potential volatility ahead.

Futures performance on Tuesday showed positive gains, with the Bureau of Labor Statistics set to release the consumer price inflation report for February.

Meanwhile, Oracle’s rally of over 13% in premarket trading following its earnings announcement signaled a positive trend, along with oil futures advancing and the 10-year Treasury yield dipping. Gold prices retreated while Bitcoin surged.

Overseas markets also showed signs of optimism, with Asian markets mostly closing higher and European sentiment cautiously positive. Investors will be closely watching the inflation report to gauge the future direction of the market.