By Will Horner and Julia Carpenter

U.S. stocks wobbled midday Tuesday, with the major indexes hovering around flat after slipping earlier, while bitcoin prices edged lower after a period of volatile trading.

The S&P 500 and Nasdaq Composite both were both flat, while the blue-chip Dow Jones Industrial Average rose 0.1%. All three indexes had opened modestly higher before losing steam.

Stocks had jumped to start the week, with recent comments from Federal Reserve officials helping to ease concerns that rising inflation could stamp out growth or prompt the central bank to suddenly tighten policy.

"The comments we have had from Fed speakers have told the market exactly what it wants to hear: that they are not concerned about the inflation data and that it hasn't changed their plan to be very cautious," said Hugh Gimber, a strategist at J.P. Morgan Asset Management.

Bitcoin prices edged lower following several days of whipsaw trading for cryptocurrency markets. Bitcoin fell 1.7% to $37,486. Investors felt reassured during the recent episode that more traditional asset classes haven't been harmed by bitcoin's volatile trading, said Mr. Gimber.

"With all the volatility we have had, it is encouraging to see broader markets are still focused on the economic fundamentals," he said.

New data on the U.S. housing market indicates home-price growth climbed in March to the highest level in 15 years. Even as early indications suggest home sales are cooling off, strong demand for housing continues to outpace supply. The S&P CoreLogic Case-Shiller National Home Price Index showed a double-digit annual increase for the fourth straight month.

After a gain in April, new U.S. consumer confidence data for May remained mostly unchanged, signaling Americans' optimism for the economy has plateaued slightly.

"There's this overriding fear that exists in the market that it's an economy that's significantly overheating and big inflationary pressures are coming," said Brian Levitt, global market strategist at Invesco.

"When you see days like today, with housing cooling off a bit and rates down a bit and technology stocks outperforming, that's a day that pushes back against that 'massively overheating, massively inflationary environment' narrative that has really gripped American and global investors."

In corporate news, shares of Moderna rose 2.8% after the drugmaker said its Covid-19 vaccine was effective in children between the ages of 12 and 17.

Lordstown Motors plunged 11.3% after the electric-truck startup said it was facing higher-than-expected costs and cut its 2021 production forecast. AutoZone slipped 2.3%, despite news the auto-parts retailer's sales beat expectations.

Brent crude oil, the global oil benchmark, ticked up 0.1% to $68.39 a barrel. Gold, a typical hedge against inflation, edged up 0.4% to $1,892 a troy ounce.

U.S. government bonds yields fell. The yield on the benchmark 10-year U.S. Treasury note declined to 1.580% from 1.608% Monday. Yields move inversely to prices.

Overseas, the Stoxx Europe 600 rose 0.3%, fueled by its tech sector.

In China, the Shanghai Composite Index jumped 2.4%, its biggest one-day gain since October, bringing it to its highest closing level in three months. The nation's currency rose 0.2% to 6.41 yuan per dollar, its strongest level in three years.

Chinese authorities have voiced concerns in recent days about rising prices for raw materials such as iron ore and copper, which has helped soothe investors' concerns about inflation, said Steven Leung, executive director of institutional sales at UOB Kay Hian in Hong Kong.

Japan's Nikkei 225 rose 0.7%, while in Hong Kong, the Hang Seng gained 1.8%.

Joanne Chiu contributed to this article.

Write to Will Horner at William.Horner@wsj.com and Julia Carpenter at Julia.Carpenter@wsj.com

(END) Dow Jones Newswires

05-25-21 1305ET