U.S. stock markets opened lower on Tuesday to start the new quarter as investors waited for new jobs and manufacturing data to provide clues about an interest rate cut.
The Dow Jones Industrial Average (^DJI) fell roughly 0.4%, while the S&P 500 (^GSPC) fell about 0.3% after both major indexes hit a new record on Monday. The tech-heavy Nasdaq Composite ( ^IXIC ) was down 0.3%.
Stocks begin to reverse in October and the fourth quarter as the market digests Jerome Powell’s latest comments. The Federal Reserve chairman said policymakers are in no rush to cut rates even as they try to keep the economy on a solid footing, prompting traders to consider a 0.5% cut.
Read More: What Fed Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards
Those bets could be reset if the August jobs report comes in softer than expected, with the central bank’s focus now firmly on the labor market. Manufacturing activity announcements from ISM and S&P Global will draw attention to clues about how quickly the US economy is slowing.
The readings will set the stage for Friday’s release of the September jobs report, which is packed with the most closely watched economic data in a week. Investors are looking for confirmation that the US economy is cooling rather than collapsing.
Meanwhile, a dockworkers’ strike began on the East and Gulf coasts, threatening to halt the flow of half of America’s ocean-going ships. The disruption caused by a large-scale strike could cost the economy billions of dollars a day, fuel inflation and put jobs at risk, as well as reverberate through American politics.
Investors have been closely watching geopolitical developments in the Middle East since Israeli troops moved into Lebanon.
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