Wall Street NewsU.S. stocks fell on Tuesday, ending a recent winning streak, as investors grew cautious ahead of the highly anticipated Jackson Hole Economic Symposium, which begins on Thursday.
The Dow Jones Industrial Average, S&P 500 and Nasdaq all posted slight losses, halting a multi-session rally that saw markets recover from an earlier sell-off fueled by recession concerns.
“Last week was the best week for stocks this year, raising questions about whether the rally can be sustained,” said Chuck Carlson, chief executive of Horizon Investment Services. “However, today’s pullback does not signal a trend change, but rather a pause after a strong rally.”
The S&P 500 and Nasdaq had just completed their longest winning streaks since late last year, with eight straight days of gains.
Central bankers from around the world will meet in Jackson Hole, Wyoming, and U.S. Federal Reserve Chairman Jerome Powell will speak on Friday. Market participants will closely scrutinize his comments for clues about the timing and magnitude of potential interest rate cuts.
“Investors are eager to see whether the next rate cut will be 25 or 50 basis points,” Carlson added. “Attention will be focused on figuring out how aggressive the Fed’s first cut might be.”
Financial markets are currently pricing in a 69.5 percent chance of a 25-basis-point rate cut at the Federal Open Market Committee’s September meeting, with a 30.5 percent chance of a more substantial 50-basis-point cut, according to CME’s FedWatch tool.
On Wednesday, the Labor Department will release preliminary baseline revisions to employment data for the 12 months ending in March. Any significant downward revisions could influence the Fed’s data-driven approach to monetary policy.
The Dow Jones fell 61.56 points, or 0.15 percent, to 40,834.97, the S&P 500 lost 11.13 points, or 0.20 percent, to 5,597.12, and the Nasdaq fell 59.83 points, or 0.33 percent, to 17,816.94.
Energy stocks led declines among the 11 major S&P 500 sectors, falling 2.7 percent, while consumer staples gained 0.5 percent.
Eli Lilly shares rose 3.1% after the company’s weight-loss drug Zepbound was shown to significantly reduce the risk of type 2 diabetes in prediabetic adults. Cybersecurity firm Palo Alto Networks also saw a surge, up 7.2% after its fiscal 2025 revenue and profit guidance beat analysts’ expectations.
Boeing shares, on the other hand, fell 4.2 percent after the U.S. Federal Aviation Administration adopted an airworthiness directive for its 787 Dreamliner.
Trading volume on U.S. exchanges amounted to 9.93 billion shares, below the 20-day average of 12.22 billion.
(With contributions from Reuters.)
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.