Small Caps Test 200-Day Average, Nasdaq 100 Eyes Record Ahead Of US-China Progress: What's Driving Markets Tuesday?

U.S. Stock Market Performance: U.S. stocks saw a modest increase on Tuesday, with the S&P 500 and Nasdaq 100 both rising by 0.4%, while small caps outperformed large caps for the fourth consecutive session. Energy sector gains were driven by rising crude prices, with West Texas Intermediate crude reaching $66 per barrel.

Economic Outlook and Bitcoin Trends: Investors are anticipating the upcoming Consumer Price Index report, which is expected to show inflation rising to 2.5%. Meanwhile, Bitcoin dipped about 1% to around $109,000, remaining close to its all-time high.