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The stock market’s eight-day winning streak came to an end on Tuesday.
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Labor market data and Fed commentary this week are the next possible catalysts for further gains.
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Fed Chairman Jerome Powell will deliver a speech on Friday.
U.S. stocks fell on Tuesday, ending the S&P 500’s longest winning streak this year.
While the benchmark index rose for eight straight days during Monday’s trading session, momentum slowed on Tuesday as investors waited for central bank commentary to fuel the rally.
Another market move could come Wednesday when the Bureau of Labor Statistics releases revised nonfarm employment figures for April 2023 through March 2024. A large downward revision could pressure the Federal Reserve to deliver deeper rate cuts, upending market expectations.
“Markets, which have recently been hit by growth fears that have raised concerns the Fed is lagging behind, will be closely watching Wednesday’s benchmark revision release to see if the market’s initial reaction was correct,” said Quincy Krosby, chief strategist at LPL Financial.
On Tuesday, futures markets were giving a 69.5% chance of a 25 basis point rate cut in September, while 30.5% expect a 50 basis point cut, according to data from the CME FedWatch Tool.
Later this week, investors will also be keeping an eye on the central bank’s Jackson Hole Symposium, where Fed Chairman Jerome Powell will deliver a speech.
Among individual stocks, Palo Alto Networks rose more than 8% on Tuesday on its estimate-beating results. The fiscal fourth-quarter win prompted Wedbush Securities to raise its price target on the stock to $400.
This was the position of the US indices at the close of trading at 4:00 p.m. on Tuesday:
Here’s what else is happening today:
In commodities, bonds and crypto:
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West Texas Intermediate crude fell 1.44% to $73.3 a barrel. Brent crude, the international benchmark, fell 0.59% to $77.2 a barrel.
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Gold rose slightly by 0.35% to $2,512.95 an ounce.
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The 10-year US Treasury yield fell four basis points to 3.818%.
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Bitcoin rose 0.32% to $59,279.
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