*

Crypto stocks fall mirroring bitcoin prices

*

Moderna ( MRNA ) rises after positive data on cancer drug

(Updates to market close)

By Stephen Culp

NEW YORK, April 9 (Reuters) -

The S&P 500 posted nominal gains on Tuesday, a day ahead of

major inflation data, weighed down by financial stocks as

investors braced for major U.S. banks to kick off earnings

reporting season on Friday.

Wednesday's hotly anticipated Consumer Price Index (CPI) is

at the top of most investors' minds as they tweak expectations

on the timing and extent of the Federal Reserve's rate-cutting

phase, following robust economic data such as last Friday's

blockbuster employment report.

"The markets are nervous about tomorrow's CPI report and

buying protection (amid) a growing perception that it could be

an uncomfortably high inflation reading," said Michael Green,

chief strategist at Simplify Asset Management in Philadelphia.

"The market is moving to hedge itself."

JPMorgan Chase & Co ( JPM ), Wells Fargo & Co ( WFC )

and Citigroup Inc ( C/PN ), due to report results on Friday, were

the three heaviest drags on the S&P Banking index.

"The financials kick off first-quarter reporting season and

often set the tone," said Bill Northey, senior investment

director at U.S. Bank Wealth Management, Billings, Montana. "We

are looking to the cyclical areas as an indicator of the health

of corporate America."

While analysts expect inflation is continuing to meander

down toward the U.S. central bank's 2% goal, the National

Federation of Independent Business reported on Tuesday that

small business optimism touched an 11-year low in March, with

inflation as the most pressing concern.

"The continued deterioration of the small business sentiment

index is actually really important," Green added. "It's the same

thing that we've seen in the past couple of cycles where the

larger companies are well protected while small businesses are

under extraordinary pressure."

According to preliminary data, the S&P 500

gained 7.67 points, or 0.15%, to end at 5,210.06 points,

while the Nasdaq Composite gained 52.68 points, or

0.32%, to 16,306.64. The Dow Jones Industrial Average

fell 9.70 points, or 0.02%, to 38,885.10.

Analysts are expecting aggregate S&P 500 first-quarter

earnings growth of 5.0% year-on-year, down from 7.2% at the

start of the quarter, according to LSEG.

Cryptocurrency and blockchain-related stocks declined,

tracking falling bitcoin prices. Exchange operator Coinbase

Global ( COIN ) and software company MicroStrategy ( MSTR )

underperformed on the day.

Moderna ( MRNA ) was a bright spot, jumping after the

drugmaker's individualized cancer vaccine developed with Merck ( MRK )

showed promise in an early-stage trial.

Alphabet Inc's ( GOOG ) shares edged higher, pushing the

company closer to the $2 trillion market cap threshold.