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Crypto stocks fall mirroring bitcoin prices

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Moderna ( MRNA ) rises after positive data on head and neck cancer

vaccine

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Indexes down: Dow 0.38%, S&P 0.32%, Nasdaq 0.17%

(Updated at 12:02 p.m. ET/ 1602 GMT)

By Shashwat Chauhan and Shristi Achar A

April 9 (Reuters) -

U.S. stocks fell on Tuesday, reversing early gains amid a

broad sell-off as investors grew nervous in the run-up to a key

inflation print later in the week that could influence the

Federal Reserve's policy easing stance this year.

In focus is the March reading of the U.S. Consumer Price

Index (CPI), due on Wednesday, that is expected to show a rise

in headline inflation to 3.4% year-on-year, from 3.2% in

February.

The core figure, which excludes volatile components such as

food and energy, is expected to ease to 3.7% year-on-year,

versus 3.8% in February.

"Given the strength of the economic data, it's getting

easier and easier to defend the notion that we might be closer

to an overheating economy than one nearing recession," said Dave

Grecsek, managing director in investment strategy & research at

Aspiriant.

"At the moment, three rate cuts this year seems a little

demanding."

Amid signs of a robust U.S. economy, investors have been

scaling back expectations for how much the central bank will cut

interest rates this year. Current bets of around a

60-basis-point easing are the lowest they have been since

October according to LSEG data, compared to about 150 bps priced

in at the start of 2024.

Traders see a nearly 57% chance of an at-least 25 bps cut in

June, according to the CME's FedWatch Tool, down from 64% last

week.

Megacap growth stocks including Nvidia ( NVDA ), Meta

Platforms ( META ) and Microsoft ( MSFT ) fell between 0.2% and

2.9%, weighing on the indexes.

Financial stocks also added to the losses, with the S&P

500 Financials Index down 0.8% and leading sectoral

declines.

Adding to the market's jitters, the commander of Iran's

Revolutionary Guard's navy said Israel's presence in the United

Arab Emirates was viewed as a threat by Tehran and it could

close the

Strait of Hormuz

if deemed necessary.

Minutes of the Fed's March meeting - where it stuck to its

guidance of three rate cuts this year - are due later in the

week and could be key in gauging where the central bank stands

on policy easing.

At 12:02 p.m. ET, the Dow Jones Industrial Average

was down 146.83 points, or 0.38%, at 38,745.97, the S&P 500

was down 16.43 points, or 0.32%, at 5,185.96, and the

Nasdaq Composite was down 28.44 points, or 0.17%, at

16,225.52.

Cryptocurrency and blockchain-related stocks declined,

tracking falling bitcoin prices. Exchange operator Coinbase

Global ( COIN ) and software company MicroStrategy ( MSTR )

dipped 4.5% and 7.5%, respectively.

Moderna ( MRNA )

shares bucked the broader trend, rising 6.9% after

the vaccine maker's individualized cancer vaccine developed with

Merck ( MRK ) showed a positive response in an early-stage

trial.

Advancing issues outnumbered decliners by a 1.09-to-1 ratio

on the NYSE and by a 1.16-to-1 ratio on the Nasdaq.

The S&P index recorded 12 new 52-week highs and one new low,

while the Nasdaq recorded 46 new highs and 53 new lows.