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Crypto stocks fall mirroring bitcoin prices

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Alphabet gains on unveiling new AI chip, data center

processor

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Indexes up: Dow 0.18%, S&P 0.31%, Nasdaq 0.39%

(Updated at 9:36 a.m. ET/ 1336 GMT)

By Shashwat Chauhan and Shristi Achar A

April 9 (Reuters) -

Wall Street's main stock indexes gained on Tuesday supported

by retreating Treasury yields, while investors awaited a key

inflation print later in the week that could help shape the

Federal Reserve's stance on interest-rate cuts this year.

The focus will be on 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.

"I would not be surprised, given the underlying strength in

the economy, that it (CPI) comes in a little warmer than

expected, but that doesn't seem to be particularly worrisome for

investors," said Mark Luschini, chief investment strategist at

Janney Montgomery Scott.

"The overarching theme is that it will cool and that the

Federal Reserve will eventually be able to cut interest rates."

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

scaling back expectations for how much the central bank will cut

interest rates by this year. Current bets of around a

60-basis-point easing are the lowest since October, according to

LSEG data, compared to about 150 bps priced in at the start of

2024.

Traders see a nearly 53% chance of an at-least 25 bps cut in

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

week.

Cushioning equities, the yield on the benchmark 10-year

Treasury note fell, easing from the November high it

had hit in the previous session. It was last at 4.3837%.

All three major indexes had a flat finish on Monday, as a

rise in Treasury yields after last week's blowout jobs report

kept gains in check.

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.

Alphabet rose 1.4% after Google revealed the

details of a new version of its data center artificial

intelligence chips.

At 9:36 a.m. ET, the Dow Jones Industrial Average was

up 71.49 points, or 0.18%, at 38,964.29, the S&P 500 was

up 15.88 points, or 0.31%, at 5,218.27, and the Nasdaq Composite

was up 63.11 points, or 0.39%, at 16,317.07.

All 11 major S&P 500 sectors were trading higher, with

real estate and communication services among

the top gainers.

Other megacap growth stocks including Amazon.com ( AMZN ),

Meta Platforms ( META ) and Microsoft ( MSFT ) rose between 0.2%

and 0.5%.

Digital Realty Trust ( DLR ) gained 1.9% after Wells Fargo

upgraded the data-center operator to "overweight" from "equal

weight", saying the company could accelerate leasing volumes in

2024.

Cryptocurrency and blockchain-related stocks declined in

early trading, tracking falling bitcoin prices. Exchange

operator Coinbase Global ( COIN ), crypto miner Marathon Digital ( MARA )

and software company MicroStrategy ( MSTR ) dipped

between 0.1% and 4.2%.

Advancing issues outnumbered decliners by a 4.07-to-1 ratio

on the NYSE and by a 2.39-to-1 ratio on the Nasdaq.

The S&P index recorded 12 new 52-week highs and no new lows,

while the Nasdaq recorded 32 new highs and 19 new lows.