US stocks fell on Tuesday to kick off a historically tough month for markets as attention turned to a week of labor data highlighted by a crucial monthly jobs report.
The Dow Jones Industrial Average (^DJI) slid 1.2% on the heels of a winning session booked before the Labor Day break. The S&P 500 (^GSPC) dropped 1.3%, while the tech-heavy Nasdaq Composite (^IXIC) pulled back 1.6%.
Stocks are retreating from near highs as Wall Street hunkers down after a roller-coaster August, with the prospect of a potentially stormy September ahead. Investors are assessing the risk of data shocks or presidential race surprises in a month that’s typically terrible for traders.
Top of mind is the August jobs report, due out on Friday, which could influence how deeply the Federal Reserve cuts interest rates at its meeting this month. With inflation now cooling, policymakers are on alert for the labor market to fall into place.
For investors, the focus is on whether the signs of slowing in the July jobs report were overstated — or an early warning of a broader slowdown. Any hints of stress should put pressure on the Fed to make a bigger reduction in rates. As of early Tuesday, traders were pricing in 31% odds of a 50 basis point cut instead of 25 basis points, per the CME FedWatch Tool.
Reports on US manufacturing activity in August will provide an earlier window into the strength of the economy later Tuesday, a potential catalyst for rate-cut recalibrations.
Meanwhile, investors are keeping a watchful eye for headwinds from the US presidential race, as Election Day draws closer. US Steel (X) shares sank in morning trading after Democratic nominee Kamala Harris said the company should stay American-owned and run in the face of a proposed takeover by Japan’s Nippon Steel.
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Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Tuesday:
Boeing (BA): Shares of the plane manufacturer sank 6% Tuesday morning following a price target cut from Wells Fargo, which highlighted pressure on the company’s cash flow as it works to develop new aircraft. The company also faces a major potential strike, as its workers in Washington state are set to go on strike if a deal isn’t reached later this month.
US Steel (X): The steel producer slipped nearly 4% after Democratic nominee Kamala Harris said the company should stay American-owned and run in the face of a proposed takeover by Japan’s Nippon Steel. Republican nominee Donald Trump has also opposed the proposed sale.
Nvidia (NVDA): Shares of the AI chip designer fell 5% during morning trading on Tuesday, continuing a slide that accelerated after the company’s earnings report last week that failed to impress Wall Street. The stock is down more than 10% over the last five days, highlighting a challenging moment for AI and chip companies that have stalled, as questions about returns on investments from their customers grow louder.
Unity (U): The video game software developer gained more than 7% Tuesday after analysts at Morgan Stanley upgraded its shares to Overweight from Equal Weight, pointing to the strength of its game engine business and Unity’s hold of its market share.
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Stocks slide in morning trading
US stocks fell on Tuesday to kick off September, a historically tough month for markets as attention turned to a week of labor data highlighted by a crucial monthly jobs report.
The Dow Jones Industrial Average (^DJI) slid roughly 0.5% on the heels of a winning session booked before the Labor Day break. The S&P 500 (^GSPC) dropped 0.6% while the tech-heavy Nasdaq Composite (^IXIC) pulled back 0.8%.
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