After eight consecutive days of gains, Wall Street experienced a pause on Tuesday. Both the S&P 500 and Nasdaq 100 indices closed the day with slight declines, ending their longest winning streaks since May 2024 and October 2023, respectively. The lack of significant economic data released on Tuesday resulted in reduced trading activity across major U.S. stock exchanges.
The afternoon saw hawkish comments from Fed Governor Michelle Bowman, who indicated that she still sees upside risks to inflation. This statement contributed to the already negative market sentiment. Bowman further emphasized that wage gains remain above the pace consistent with the Fed’s inflation target, highlighting the need to stay vigilant on the price-stability aspect of the Fed’s mandate while carefully monitoring for any substantial weakening in the labor market.
Among the sectors, three finished in positive territory while eight ended the day in the red. The Consumer Staples Select Sector SPDR Fund (XLP) rose 0.5%, the Health Care Select Sector SPDR Fund (XLV) gained 0.4%, and the Real Estate Select Sector SPDR Fund (XLRE) edged up by 0.1%. On the other hand, energy stocks led the decline as WTI oil prices fell below $74 per barrel, marking a two-week low. The Energy Select Sector SPDR Fund (XLE) dropped 2.6% as a result.
Several individual stocks significantly impacted the overall market performance. Nvidia Corp. (NVDA), a major player in the tech sector, fell by 2.1%, contributing to a 0.15 percentage point loss in the S&P 500. Exxon Mobil Corp. (XOM) also weighed heavily, dropping 3.4% and subtracting 0.04 percentage points from the S&P 500’s performance. Among the worst performers in the S&P 500 were Insulet Corp. (PODD) and DexCom Inc. (DXCM), which plunged 6.9% and 6.3%, respectively.
In the Nasdaq 100, Nvidia’s decline contributed to a 0.18 percentage point loss in the index, followed by Broadcom Inc. (AVGO), which added another 0.05 percentage point decline. DexCom and PDD Holdings Inc. (PDD), a Chinese company, were the worst performers in the Nasdaq 100, with the latter falling 4.6%.
