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Feb headline CPI rises 0.4% as expected

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Oracle jumps as AI demand reignites cloud business

momentum

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Indexes up: Dow 0.01%, S&P 0.16%, Nasdaq 0.15%

(Updated at 9:54 a.m. ET/ 1354 GMT)

By Bansari Mayur Kamdar and Shashwat Chauhan

March 12 (Reuters) -

Wall Street's main stock indexes struggled for direction on

Tuesday, as traders held on to bets of rate cuts by the Federal

Reserve in the coming months, even as consumer prices data came

in hotter than expected.

A Labor Department report showed U.S.

consumer prices

increased in February amid higher gasoline and shelter

costs, suggesting some stickiness in inflation that could delay

an anticipated June interest-rate cut from the Federal Reserve.

The Consumer Price Index (CPI) rose 0.4% last month

after climbing 0.3% in January. Excluding volatile food and

energy components, consumer prices increased 0.4% in February

after rising by the same margin in January.

"The disinflationary trend is petering out, but

inflation is not resurging," said Seema Shah, chief global

strategist at Principal Asset Management.

"This print is just about enough to keep rate-cut

expectations for June stable - but another print like this next

month would push the first cut into the second half of the year,

putting the soft landing narrative in question."

Traders are now seeing a 70% chance of the first rate

cut coming in June, according to the CME FedWatch Tool, from 71%

ahead of the inflation report.

Last month's stock market rally was slowed after data

showed signs of a robust economy and sticky inflation, as

traders pushed back expectations on the timing of the Fed's

first rate cut to June from March.

At 9:54 a.m. ET, the Dow Jones Industrial Average was

up 3.64 points, or 0.01%, at 38,773.30, the S&P 500 was

up 8.10 points, or 0.16%, at 5,126.04, and the Nasdaq Composite

was up 24.31 points, or 0.15%, at 16,043.59.

Utilities led losses across major S&P 500 sectors,

down 0.4%, while a 0.5% rise in rate-sensitive technology stocks

helped crimp losses.

Oracle

jumped 10.7% on signs the firm was making progress

in its plan to grab a share of the cloud-computing market,

thanks to its tie-up with AI chip giant Nvidia.

Boeing ( BA )

shed 4.1% after a report said an audit by the

Federal Aviation Administration found dozens of problems with

the 737 MAX's production.

Southwest Airlines ( LUV )

dipped 12.9% after saying it expects 42% less MAX

deliveries this year from Boeing ( BA ) than previously estimated,

which will likely result in a cut in its 2024 capacity.

3M ( MMM )

jumped 5.8% after the industrial conglomerate said

that William Brown would be appointed its chief executive

officer, effective May 1.

Declining issues outnumbered advancers for a 1.43-to-1

ratio on the NYSE and for a 1.59-to-1 ratio on the Nasdaq.

The S&P index recorded eight new 52-week highs and no new

lows, while the Nasdaq recorded 22 new highs and 57 new lows.