Wall Street Today | Stocks Remained Lower, Aside from CES Tech Buzz

US benchmark stock indexes traded mixed in choppy markets, recovering from earlier sharp declines, while government bond yields declined after midday on Tuesday.

The US Dollar index rose 0.3% to 102.51. West Texas Intermediate crude oil advanced 2.6% to $72.61. Speculators started 2024 by signaling a major bearish shift following the second largest weekly increase in short bets since 2017," Saxo Bank said in a note. "For now, $70 in WTI and $75 in Brent seem to be offering some support."

Gold was up 0.2% to $2,037.12 per troy ounce, while silver was down 0.5% to $23.19 per ounce.

According to the CME Fed watch tool, the futures market has priced in a 95% chance that the Federal Open Market Committee (FOMC) will not change rates at the next meeting, Jan. 31. As stated in last week's release of the Dec. FOMC meeting minutes, members intend to keep rates at peak levels until they are sure inflation has begun to decline.

In speaking with before the Atlanta Roteray Club Monday, the Atlanta Federal Reserve President Raphael Bostic said inflation is on track towards a 2% goal, but the Fed would have to remain "diligent and short run attentive" throughout the year, Bloomberg reported.

Speaking to the Atlanta Rotary Club, Bostic said he was not ready to declare victory quite yet, and policy would have to remain restrictive through the end of the year, according to the Benzinga newswire. He saw two 0.25 reductions in the target interest rate over that time, but with inflation still above target and employment slowing, they would have to remain cautious.

The Energy Information Administration on Tuesday said it expects to record US oil production in 2024 and even higher next year.

In its influential monthly Short-Term Energy Outlook, the agency expects US oil output to average a record 13.2 million barrels per day this year, rising to 13.4 million bpd in 2025.

Our forecast of crude oil production in the United States reaches 13.2 million barrels per day (b/d) in 2024 and more than 13.4 million b/d in 2025, both of which would be new records. Production growth continues over the next two years, driven by increases in efficiency. However, growth slows because of fewer active drilling rigs," the EIA noted.

Global oil and gas production is expected to rise by 0.6 million bpd this year, down from a rise of 1.7 million bpd in 2023, while the agency expects output growth of 1.6 million bpd in 2025.

In our forecast, global liquid fuels production growth slows in 2024 because of both OPEC+ production cuts and slowing non-OPEC growth. OPEC+ crude oil production declines by 0.6 million b/d in our forecast for 2024, which is offset by 1.2 million b/d of production growth outside of the group," the study said.

However, the EIA expects global demand to rise by 1.4 million bpd this year and 1.2 million bpd next year.

We expect that OPEC+ production cuts will lead to global oil inventory withdrawals of 0.8 million b/d on average in 1Q24. After a period of relative balance from 2Q24 through 1Q25, we expect global oil inventories will build over the final three quarter of 2024 as slowing demand growth once again is outpaced by rising supply growth," the EIA said.

The price of Bitcoin has gained 4% over the past 24 hours to $46,700, briefly breaching the $47,000 level on Monday for the first time since March 2022. Bitcoin -- which had a blowout 2023 -- already has surged 10% so far this year amid expectations that the Securities and Exchange Commission will approve the first spot Bitcoin ETF, with a decision coming this week.