by Stephen Culp

NEW YORK (Reuters) – The New York Stock Exchange ended lower on Tuesday, pausing after several consecutive positive sessions, in the absence of any real catalysts and ahead of the Jackson Hole symposium later this week, at which the Federal Reserve chairman is due to speak.

The Dow Jones index fell 0.15%, or 61.56 points, to 40,834.97 points.

The broader S&P 500 lost 11.13 points, or 0.20%, to 5,597.12.

The Nasdaq Composite fell by 59.83 points (0.33%) to 17,816.94 points.

After a dip earlier this month triggered by fears of a potential recession in the U.S. economy, Wall Street’s main indices rebounded, with the S&P 500 and Nasdaq posting their longest series of gains since the end of last year.

All three declined on Tuesday, in the absence of clear direction in the markets, three days before the highly anticipated comments of the head of the American central bank, Jerome Powell, at the Jackson Hole symposium in Wyoming.

“I don’t think today is indicative of a change in trend,” said Chuck Carlson, managing director of Horizon Investment Services in Hammond, Indiana.

“Investors have taken a break, they need it after feasting over the last two weeks,” he added.

Market participants are looking to Jerome Powell’s speech later this week for possible clues about the timing and extent of monetary easing the Fed is considering this year.

The question is whether the expected rate cut in September “will be 25 basis points or 50 basis points,” Carlson said, “and people should try to read between the lines to guess what’s going to happen.”

Financial markets are currently 69.5% pricing in a 25 basis point rate cut at the Fed’s September meeting, FedWatch shows. A 50 basis point cut is being considered at 30.5%.

Ahead of Jerome Powell’s speech on Friday, investors will be eyeing the minutes of the Fed’s latest policy meeting on Wednesday as well as data from the U.S. Labor Department on the job market for the previous fiscal year.

Among the major S&P 500 sectors, energy was the biggest decliner on the day, down 2.7%. In stocks, Eli Lilly gained 3.1% after trials showed its diabetes drug Zepbound was effective. Palo Alto Networks jumped 7.2% after its fiscal year forecast beat expectations. Boeing’s fell 4.2% after the U.S. Aviation Administration said it was imposing a safety directive on the planemaker’s 787 Dreamliner family.

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( Jean Terzian)

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