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The stock market’s eight-day winning streak snapped on Tuesday.
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Labor data and Fed commentary this week are the next potential catalysts for further gains.
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Fed Chairman Jerome Powell is scheduled to speak on Friday.
US stocks traded lower on Tuesday, ending the S&P 500’s longest winning streak this year.
While the benchmark index gained for eight consecutive days through Monday’s trading session, momentum dissipated Tuesday as investors waited on central bank commentary to help boost the rally.
A fresh market mover could come on Wednesday when the Bureau of Labor Statistics releases revised non-farm payroll data from April 2023 through March 2024. A large downward revision could pressure the Federal Reserve to pursue deeper interest rate cuts, upending market expectations.
“Markets, having recently experienced a growth scare that led to concerns that the Fed is behind the curve, will be monitoring Wednesday’s release of the benchmark revision to see if the market’s initial reaction was, in fact, correct,” LPL Financial strategist Quincy Krosby said.
As of Tuesday, futures markets indicate 69.5% odds of a 25-basis point rate cut in September. 30.5% expect a 50-basis point reduction, CME FedWatch Tool data shows.
Later this week, investors will also be eyeing the central bank Jackson Hole Symposium, where Fed Chairman Jerome Powell is scheduled to speak.
Among individual stocks, Palo Alto Networks jumped over 8% on Tuesday due to estimate-topping results. The fiscal fourth quarter beat caused Wedbush Securities to raise its price target for the stock to $400.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
Here’s what else is going on today:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil fell 1.44% to $73.3 a barrel. Brent crude, the international benchmark, slid 0.59% to $77.2 a barrel.
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Gold inched higher by 0.35% to $2,512.95 an ounce.
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The 10-year Treasury yield dropped four basis points to 3.818%.
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Bitcoin rose 0.32% to $59,279.
Read the original article on Business Insider