Stocks mixed as investors await U.S. inflation data

U.S. stocks lost their early morning gains and fell in afternoon trading as the market remains shaky following a broad sell-off.

The S&P 500 was largely flat just before the close after slumping 3.2% on Monday and hitting its lowest level in more than a year. The Dow Jones Industrial Average fell 0.4%, and the Nasdaq rose 0.9%. The indexes fell to their lowest points so far this year on Monday. 

The stock market is trying to regain its footing as investors assess the impact of rising interest rates, Ukraine war and ongoing supply-chain problems related to the pandemic, Dory Wiley, CEO of Commerce Street Holdings, told CBS News. Markets saw particularly sharp losses last week after the Federal Reserve raised interest rates half a percentage point. The central bank is raising interest rates from historic lows to fight persistently rising inflation, which is at its highest levels in four decades.

"The market is very, very uncertain with inflation, with the outlook, with the uncertainty in Ukraine, supply chains, etc," he said.

The S&P 500 has fallen 16% this year, putting it in "correction" territory, or a decline of at least 10% from its previous peak. The blue-chip Dow is off 11%, while the Nasdaq is in a bear market, with the high-tech index tumbling 24% in 2022.

Inflation accelerated to 8.5% in March, the biggest increase since 1981. The U.S. Labor Department plans to release its report on consumer prices for April on Wednesday. The department will release its report on producer prices, or wholesale prices that impact businesses, for April on Thursday.

Russia's ongoing invasion of Ukraine has only increased worries about rising inflation. The conflict pushed already high oil and natural gas prices even higher, while putting more pressure on costs for key food commodities like wheat and corn. 

Supply-chain issues combined with higher prices on raw materials, shipping and labor have been cutting into corporate financial results and forecasts. Many companies have been raising prices on everything from clothing to food, raising concerns that consumers will eventually cut spending, which would hurt economic growth.