Wall Street experienced a slight dip on Tuesday as risk sentiment worsened. All major U.S. equity indices traded in the red, breaking their eight-day winning streak. This recent run had nearly erased the losses sustained earlier in the month. Investors are exercising caution as they anticipate important economic events scheduled for later this week.
On Wednesday morning, the Bureau of Labor Statistics will release its “2024 Preliminary Benchmark Revision to Establishment Data.” This release will include revised figures for non-farm payrolls covering the period from April 2023 to March 2024. Later that day, at 2 p.m. E.T., the Federal Reserve will publish the minutes from its July Federal Open Market Committee (FOMC) meeting. The Jackson Hole Symposium, beginning on Thursday, will see Fed officials making headlines during media interviews. Finally, on Friday, Fed Chair Jerome Powell will deliver a live address at 10:00 a.m. ET.
Small cap stocks underperformed large caps on Tuesday, with nine out of 11 S&P 500 sectors trading in negative territory. The only exceptions were healthcare and consumer staples. The U.S. dollar weakened, falling 0.4% and reaching its lowest level since late December 2023. The Invesco DB USD Index Bullish Fund ETF UUP experienced its worst three-day performance year-to-date. Treasury yields also declined, with more significant drops occurring at the long end of the curve. The long-dated iShares 20+ Year Treasury Bond ETF TLT rose 0.8%, setting itself up for its third consecutive green session and its seventh in the last eight.
Gold remained steady at record-high levels of $2,500 per ounce, while oil prices declined for the third consecutive day, dropping another 0.5%. Bitcoin BTC/USD slipped 1.2% to $58,755.
Here are some notable moves in specific indices and individual stocks:
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Major Indices:
* S&P 500: -0.2%
* Dow Jones: -0.2%
* Nasdaq 100: -0.4%
* Russell 2000: -1.3%
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ETFs:
* SPDR S&P 500 ETF Trust SPY: -0.3%
* SPDR Dow Jones Industrial Average DIA: -0.1%
* Invesco QQQ Trust Series QQQ: -0.4%
* iShares Russell 2000 ETF IWM: -1.3%
* Consumer Staples Select Sector SPDR Fund XLP: +0.3%
* The Health Care Select Sector SPDR Fund XLV: +0.3%
* Energy Select Sector SPDR Fund XLE: -2.1%
*
Individual Stocks:
* Palo Alto Networks Inc. PANW: +8.6% (due to better-than-expected quarterly results)
* Lowes Companies Inc. LOW: -1.3% (earnings-related)
* Medtronic plc. MDT: +1.9% (earnings-related)
* Fabrinet FN: +19% (earnings-related)
* PayPal Holdings Inc. PYPL: +3.1% (JPMorgan Chase & Co. raised price target)
* Eli Lilly & Co. LLY: +2% (positive results from a phase 3 study)
* Boeing Co. BA: -4% (grounding 777X test fleet due to engine mounting issues)
