Stocks fell on Tuesday as traders digested a year-end rally to record levels. They also awaited new U.S. inflation data set for release this week.

The S&P 500 lost 0.3% to end at 6,034.91, and the Nasdaq Composite dropped 0.25% to 19,687.24. Both indexes booked back-to-back losses. The Dow Jones Industrial Average declined for a fourth day, sliding 154.10 points, or 0.35%, to 44,247.83.

Oracle shares slumped 6.7% after the database software company posted fiscal second-quarter results that missed Wall Street's estimates. The stock has jumped around 68% this year.

"[The market] has been narrowing over the past week," CFRA Research's chief investment strategist Sam Stovall said to CNBC. "Investors are waiting to see if that simply is your traditional seasonal softness in mid-December, and I think [they] are expecting the participation to broaden out once again as the market does indeed go through an end-of-year pop."

Alphabet was a breakout winner of the session, advancing 5.6%, on the back of Google making a major breakthrough in quantum computing with the unveiling of its new chip. That puts its year-to-date gains at more than 32%.

This comes after the major averages fell on Monday. The S&P 500 and Nasdaq Composite slid about 0.6%, dropping from recent records as shares of Nvidia declined. Shares of the chip giant were more than 2% lower Tuesday, extending losses seen in the previous session after a Chinese regulator said it was investigating the company for possibly violating the country's antimonopoly law.

By contrast, Meta Platforms, which also saw losses on Monday, was up 1% Tuesday.

Investors are now waiting on the U.S. consumer price index report, which is due Wednesday and could influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting. Economists polled by Dow Jones forecast that headline inflation rose 0.3% in November and 2.7% over the prior 12 months.

Stocks close in the red for another day

The blue-chip Dow Jones Industrial Average fell 154.10 points, or 0.35%, to finish at 44,247.83 on Tuesday.

The broad market S&P 500 also fell 0.3% to settle at 6,034.91, and the tech-heavy Nasdaq Composite fell 0.25% to finish at 19,687.24.

— Sean Conlon

U.S. Steel falls on report Biden will block Nippon sale this month

U.S. Steel shares plunged late Tuesday afternoon on a report that President Joe Biden plans to block the company's acquisition by Japan's Nippon Steel later this month.

U.S. Steel stock was briefly halted due to volatility. The company's shares were down more than 9% after trading resumed.

People familiar with the matter told Bloomberg News that Biden will block the $14.1 billion sale once the Committee on Foreign Investment in the United States submits its review to him by Dec. 22 or Dec. 23.

— Spencer Kimball

Kroger shares jump 5% after merger with Albertsons is blocked by judge

Kroger and Albertsons shares moved in opposite directions after a U.S. judge nixed the grocers' planned $25 billion merger. Kroger shares surged 4%, while Albertsons shares tumbled more than 3% and hit a 52-week low.

The Biden administration had fought against the deal, arguing the combination would reduce competition and lead to higher prices at the supermarket. However, Kroger pushed back against this argument. Management claimed becoming a larger entity would result in cost savings that could then be passed on to their customers.

Kroger shares have outperformed the market this year, with a 32% gain, while Albertsons shares have fallen 22%.

— Christina Cheddar Berk

Trump tariffs not expected to go into effect until late 2025, says Wolfe Research

President-elect Donald Trump's tariff plans may not go into effect for some time, according to Wolfe Research's Stephanie Roth.

"We don't expect sweeping tariffs to go into effect until late 2025 — Republicans are reportedly discussing how to potentially leverage tariff revenue in a broader fiscal package, which increases the odds tariffs happen late in 2025 rather than early," the firm's chief economist wrote.

If a 10% universal baseline tariff and a 60% tariff on Chinese goods coming into the U.S. were to be implemented, Roth estimates the U.S. economy will be hit up to 1.2% in gross domestic product, and inflation will see a boost of 1.1%.

— Sean Conlon

A continued rally appears to be 'path of least resistance' for year-end 2024, says Barclays

The market may likely see more upside over the coming weeks, according to Barclays.

"Momentum seems so strong that a continued rally seems the path of least resistance for the rest of 2024," analyst Ajay Rajadhyaksha wrote in a note this week.

Rajadhyaksha also said bond markets are expected to be "range-bound," given that investors are awaiting more details on President-elect Donald Trump's policies.

— Sean Conlon

S&P 500 is doing something unusual, BTIG analysis shows

The S&P 500 has had more declining than advancing stocks in each of the last six completed trading days, according to BTIG data. Despite that, it has been a winning period for the broad index in an unusual twist.

The S&P 500 is up around 0.3% during that timeframe. There has never been a six-day run with both negative daily breadth and a positive overall return in the past two decades, according to BTIG.

— Alex Harring

A volatile bull market is in store for 2025, says Citi

While stocks may be due for more gains in 2025, Citi believes investors should also brace for more volatility given an uncertain policy outlook and raised valuations.

"We maintain a positive view on US equities headed into 2025," the firm's U.S. equity strategist Scott Chronert wrote. "Ongoing soft landing and Artificial Intelligence tailwinds now interact with Trump policy promise, and risks. Continued broadening beyond Mega Cap Growth impacts is critical but an extended valuation starting point will be an ongoing hurdle."

The strategist has a year-end 2025 base case target for the S&P 500 of 6,500, allowing for gains in the mid-single digits next year. However, his bull case of 6,900 and bear case of 5,100 allow for a broad range of outcomes.

"Our bull and bear case assumptions help frame an expectation for increased volatility next year," Chronert continued.

— Sean Conlon

Oracle's stock heads for worst day in roughly a year

Oracle shares shed about 8% and are on pace for their worst day since Dec.12, 2023.

The decline came on the heels of a disappointing fiscal second-quarter earnings report that fell short of Wall Street's estimates on the top and bottom lines. Oracle also issued a weak current-quarter outlook.

The drop in shares comes as Oracle heads for its best year since 1999 as investors snatch up shares of cloud infrastructure players assisting companies with the demand storage needs for artificial intelligence models.

— Samantha Subin

8 stocks in the S&P 500 trade at new 52-week highs

During Tuesday's trading session, eight stocks in the S&P 500 reached new 52-week highs.

Names that hit this milestone included:

• AutoZone trading at all-time-high levels back to its initial public offering in April 1991
• O'Reilly Auto trading at all-time-high levels back to its IPO in April 1993
• Tesla trading at levels not seen since November 2021
• Citigroup trading at levels not seen since October 2021
• MSCI Inc. trading at levels not seen since December 2021
• Catalent trading at levels not seen since April 2023
• Apple Inc. trading at all-time-high levels back to its IPO in December 1980
• ServiceNow trading at all-time-high levels back to its IPO in June 2012

On the flip side, just three stocks were trading at their 52-week lows: Baxter, Centene and Teleflex.

— Lisa Kailai Han, Christopher Hayes

Semi stocks slide

Semiconductor stocks dropped on Tuesday, putting downward pressure on the market.

The iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) each slid more than 2%. By comparison, the S&P 500 was near flat and the technology-heavy Nasdaq Composite ticked up 0.2%.

Among the worst-performing semi stocks was Broadcom, which slid about 4%. Micron and Taiwan Semiconductor also each dropped more than 3%.

Notably, artificial intelligence darling Nvidia shed nearly 2%.

— Alex Harring

Alphabet shares gain after Google makes breakthrough in quantum computing

Shares of Alphabet rose more than 5% in afternoon trading following Google's breakthrough in quantum computing.

The company said its new chip, known as Willow, is able to decrease errors "exponentially" as the amount of qubits, which are considered the units of information in quantum computing, are increased. This "cracks a key challenge in quantum error correction that the field has pursued for almost 30 years," Google also said.

The stock's move brings its year-to-date gains to more than 32%. Shares have also risen more than 24% over the past three months.

— Sean Conlon

Dollar index climbs Tuesday

The dollar index rose 0.4% Tuesday to 106.58.

Against the euro, the dollar gained 0.5%. The euro last traded at 1.05 against the greenback.

Meanwhile, the dollar strengthened 0.6% to 152.13 yen, and climbed 0.4% against the won to 1,434.23. In December, the greenback has gained 1.6% and 2.8% against the won and the yen, respectively.

— Hakyung Kim

Walgreens Boots Alliance shares pop 18% after briefly halting for volatility

Walgreens Boots Alliance shares popped 18% in midday trading, after briefly halting for volatility, following a Wall Street Journal report, citing sources familiar, that said the pharmacy chain is in talks to sell itself to private equity firm Sycamore Partners.

The deal could be completed as soon as early next year if talks don't fall apart, the report said. Sycamore Partners declined CNBC's request for comment.

The move would take Walgreens off the public market after it was booted off the Dow Jones Industrial Average earlier this year. The stock is down 57% in 2024.

— Sarah Min

Alphabet, Oracle among stocks making biggest midday moves

Check out the companies making headlines in midday trading:

• Alphabet — The online search giant operator launched its latest quantum chip, called Willow. Alphabet said this marks a major breakthrough in the field of quantum computing, leading shares 4% higher. Quantum computing is considered the next frontier for many tech companies.
• Oracle — Shares dropped 8% after the cloud infrastructure company fell short of Wall Street's fiscal second-quarter expectations. The company also issued disappointing fiscal second-quarter guidance, saying it expects earnings per share to range between $1.50 and $1.54, versus an LSEG estimate of $1.57.
• Alaska Air Group — The airline carrier's share price soared more than 14% after Alaska Air issued better-than-expected guided fourth-quarter results higher and said it expects to grow profits by $1 billion through 2027. The company is also planning to launch nonstop flights next year to Tokyo and Seoul from its home hub of Seattle.

For the full list, read here.

— Pia Singh

209 S&P 500 advancers

There were just 209 advancers in the S&P 500, with the index itself little changed as investors awaited this week's consumer prices data.

Communication services and consumer discretionary were the top-performing sectors, up 2% and 0.8%, respectively. By contrast, real estate stocks slid 1%.

Boeing was the No. 1 stock in the broader index, gaining more than 5% after Reuters, citing people familiar, said the company restarted production of its 737 Max jetliner.

On the other hand, Super Micro Computer and Oracle were lower by 8% and 7%, respectively.

— Sarah Min

Equal weight S&P 500 fund on track to extend losing streak

The Invesco S&P 500 Equal Weight ETF (RSP) dipped 0.5% on Tuesday, putting the fund on track for its fourth straight losing session and sixth in the past seven, according to FactSet data.

The declines have also come during the session. As Bespoke Investment Group pointed out in a post on social media site X, the RSP has seen intraday declines in six straight sessions. It would need to rally and close above $184.46 to snap that streak on Tuesday.

The struggles for the RSP are notable because the equal weight fund can be a proxy for market breadth. While the S&P 500 has become increasingly concentrated in a handful of tech names over the past year, the behavior of the RSP is more indicative of the broader large cap stock universe.

— Jesse Pound

China funds pull back

China-focused exchange-traded funds relinquished some gains on Tuesday, a day after the country promised "more proactive" fiscal stimulus and looser monetary policy.

The iShares China Large-Cap ETF (FXI) and iShares MSCI China ETF (MCHI) each slid just over 4.5% in late morning trading. The KraneShares CSI China Internet ETF (KWEB) also dropped more than 4.5%.

Despite those slides, all three funds are still higher compared with where they started the week. That underscores the strength of Monday's rally.

— Alex Harring

The Trump Trade is already running out of steam, Wolfe Research says

The Trump Trade is already running out of steam, according to Wolfe Research.

"Uncertainty in the first half of 2025 should put a damper on the 'Trump Trade,'" the firm's chief investment strategist Chris Senyek wrote Tuesday. "So in the meantime we'd continue to own the Mag 7!"

The Trump Trade will have three parts, Senyek wrote, with the first part unwinding in the immediate aftermath of the election. Senyek expects the second part of the trade will likely come in the first 100 days of the president-elect's term. The third, he said, will come in the second half of 2025, as incoming data indicates whether Trump's policy agenda is a positive or negative for economic growth.

For now, as the first part of the Trump Trade finishes its course, Senyek said he would stick to the "Magnificent Seven" that are not in the "crosshairs of policy risk" through the first half of 2025.

— Sarah Min

Sirius XM shares drop 8%

Shares of Sirius XM slid more than 8% on Tuesday after the radio operator appointed a new chief operating officer and announced cost-cutting initiatives.

The firm said it will target an initial incremental $200 million of annualized savings as it exits 2025, citing "marketplace headwinds." The company said it will also move its marketing and other resources away from "high-cost, high-churn audiences in streaming."

— Yun Li

Stocks open little changed

Stocks were relatively unchanged Tuesday morning.

The S&P 500 rose about 0.1%, and the Nasdaq Composite rose almost 0.3%. Meanwhile, the Dow Jones Industrial Average fell 88 points, or 0.2%.

— Sean Conlon

Alaska Air shares rise following guidance boost

Shares of Alaska Air Group rose nearly 11% in premarket trading on the heels of the carrier raising its fourth-quarter earnings forecast and authorizing a $1 billion stock buyback.

The company now expects earnings to come in between 40 cents and 50 cents per share, up from its prior guidance of 20 cents to 40 cents per share. Analysts polled by FactSet were looking for earnings of 49 cents per share for the period.

Alaska Air also announced it is going to launch new nonstop flights to Japan and Korea in 2025 as part of its plan to deliver $1 billion in profit by 2027.

The stock has outperformed the broader market this year, jumping more than 38% year to date. Shares have also gained around 36% over the past three months.

— Sean Conlon, Leslie Josephs

Morgan Stanley raises Tesla price target, upgrades GM

Morgan Stanley analyst Adam Jonas appears to be cautiously optimistic about the outlook for the auto industry heading in 2025.

"The US election result has extended the 'ICE is Nice' trade for a bit longer but keep on the lookout for hidden value in the EV ecosystem into the 2H. We recommend investors stay nimble and selective given the volatility of policy outcomes," Jonas said in a note to clients on Tuesday. "ICE" stands for internal combustion engine, the traditional alternative to electric vehicles.

Morgan Stanley made two changes to its ratings of auto stocks: an upgrade of General Motors to equal weight from underweight, and hiking the price target on Tesla to $400 per share from $310.

The new price target is just 2.5% above where Tesla closed on Monday, but the stock is still Jonas' top pick in the industry.

Tesla could be a beneficiary from the new Trump administration if change leads to regulatory changes that usher along an autonomous driving future.

"If the Trump Administration looks to clear the path for a Federal framework on autonomous vehicles, we believe investors will eventually appreciate that the discussion of AVs is also a discussion about EVs. Among a range of policy tools, we see tariffs as a lever to help accelerate onshoring of enabling technology underpinned by more de-risked supply chain," Jonas said.

— Jesse Pound

Stocks making the biggest moves before the bell: Oracle, Alaska Air and more

These are the stocks moving the most in premarket trading:

• Oracle — The database software company slid roughly 7% after posting fiscal second-quarter earnings and revenue that lagged analysts' estimates.
• Alaska Air Group — The Seattle-based carrier guided Q4 results higher and set a $1 billion buyback, sending the stock 11% higher.
• MongoDB — The database platform tumbled 7% after Chief Financial Officer and Chief Operating Officer Michael Gordon stepped down effective Jan. 31.

Read the full list of stocks moving here.

— Lisa Kailai Han

Optimism among small business owners hits highest point since June 2021

Small businesses sentiment popped to its highest level in nearly three and a half years following November's presidential election, the National Federation of Independent Business reported Tuesday.

The NFIB Small Business Optimism Index hit 101.7 for November, an increase of 8 points and the best reading since June 2021. Economists surveyed by Dow Jones had forecast a reading of 94.8.

"The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners," said Bill Dunkelberg, the group's chief economist. "Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations."

Along with the higher reading for the headline index, the share of business owners expecting a better economy ahead jumped 41 points from October to a net 36%, the highest since June 2020.

— Jeff Cox

Mizuho is bullish on this beverage canning company

Fears surrounding aluminum packaging company Ball are overstated, according to Mizuho, which believes investors should buy the recent pullback in shares.

The firm upgraded the stock to outperform from neutral and maintained its $67 price target, which is 16% above where shares closed on Monday.

"Despite recent misplaced concerns about pricing and volume, we don't believe earnings are at risk, or that fundamentals have changed. We believe the recent pullback in the shares represents a good buying opportunity and an attractive entry point," analyst Edlain Rodriguez wrote in a Tuesday note.

The company shut down around 15% of its manufacturing capacity to account for lower consumer demand post-pandemic.

"That capacity closure has better positioned Ball for the medium-term as demand gradually normalizes," Rodriguez said.

— Hakyung Kim

Nvidia falls again

Nvidia shares were down slightly a day after the chipmaker pulled back on China launching an investigation into the company possibly violating the country's antimonopoly law.

The stock was last down 0.3% in the premarket. On Monday, it fell 2.6%, leading to Nvidia's longest losing streak since September.

— Fred Imbert

Citi increases Broadcom price target before earnings announcement

Citi believes Broadcom's fiscal fourth-quarter results will top expectations ahead of the company's earnings release on Thursday.

Analyst Christopher Danely raised his price target on shares to $205 from $175, implying 14.6% upside potential from Monday's close. Danely also reiterated his buy rating on the stock.

Danely estimates Broadcom could report up to $15 billion in sales, or a 7% rise from the previous quarter. The company's non-AI semiconductor business will likely drive its better-than-consensus results, he added.

Current-quarter guidance could be held back on a slowdown in orders from Google, a leading AI customer, Danely said.

"We do expect business to ramp from Meta throughout C25 and pick up the slack," Danely wrote in a Tuesday note.

— Hakyung Kim

South Korea leads Asia gains as political turmoil continues to grip the country

South Korean markets led gains in Asia on Tuesday, with the country's blue-chip Kospi surging 2.43% and seeing its best day in almost three months, while the small-cap Kosdaq spiked 5.52%.

That comes as the country continues to grapple with the fallout of President Yoon Suk Yeol's short-lived martial law declaration.

Other markets in Asia also climbed, with Japan's Nikkei 225 up 0.53% and mainland China's CSI 300 rising by 0.73%.

— Lim Hui Jie

European markets open lower

European stocks opened lower on Tuesday, as investors reacted to Chinese import and export figures that came in below expectations in November.

The pan-European Stoxx 600 index was 0.25% lower shortly after the opening bell, with all major bourses trading in negative territory.

Read the latest here.

— Chloe Taylor

Stocks making the biggest moves after hours

Check out some of the companies making headlines in extended trading:

• Oracle — Stock in the computer technology company slipped 5% after Oracle slightly missed fiscal second-quarter earnings estimates. The firm reported adjusted earnings of $1.47 per share, while analysts polled by LSEG were looking for $1.48 in earnings per share. Oracle's revenue of $14.1 billion matched analysts' estimates.
• MongoDB — Shares added more than 9% after the database company raised its fourth-quarter forecast. MongoDB now expects adjusted earnings per share in the range of 62 cents to 65 cents, while analysts polled by LSEG were looking for 58 cents in earnings per share. The firm also expects revenue in the current quarter of $515 million to $519 million, against a forecast $509 million.
• Vail Resorts — The operator of ski resorts saw shares jump close to 3% after posting a narrower-than-expected loss in the fiscal first quarter. Vail reported an adjusted loss of $4.61 per share on revenue of $260 million. Analysts polled by LSEG were looking for a loss of $5.00 per share and revenue of $253 million.

Read the full list here.

— Brian Evans

Stock futures open little changed

Stock futures were little changed on Monday, after both the S&P 500 and Nasdaq Composite pulled back from their respective highs.

S&P 500 futures ticked down 0.03%, while Nasdaq 100 futures lost 0.01%. Futures tied to the Dow Jones Industrial Average hovered near the flatline.

— Brian Evans