Argentina's benchmark S&P Merval index edged up 0.3% in dollar terms on Tuesday, while the JP Morgan country risk index climbed to 439 basis points.
The mixed performance in Buenos Aires reflects a broader recalibration of risk appetite following a significant macroeconomic data release from the United States.
The US Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, surged to its highest level in three years.
The hotter-than-expected print signals persistent price pressures, increasing the likelihood that the Federal Reserve will maintain higher interest rates for longer than previously anticipated.
This development has cast a shadow over global equity markets, with US stock indices trading in mixed territory as investors digest the implications for monetary policy.
For emerging markets like Argentina, a hawkish US stance typically strengthens the dollar and increases borrowing costs, putting pressure on local currencies and sovereign debt valuations.