Major market averages slipped on Tuesday as investors await another wave of mega-cap earnings and the Federal Reserve decision on rate cuts slated for tomorrow.
Early on and the Nasdaq Composite (COMP:IND) was -0.3%, the S&P 500 (SP500) was -0.3%, and the Dow (DJI) was -0.5%.
Wall Street traders and investors watched the benchmark averages close higher on Monday after markets rallied in the previous trading week.
“Markets got the week off to a decent start yesterday, with the S&P 500 (+0.32%) building on last week’s advance as we await the Fed’s decision tomorrow and an array of earnings releases,” said Deutsche Bank’s Jim Reid.
The 10-year Treasury yield (US10Y) rose 3 basis points to 4.65%. The 2-year yield (US2Y) advanced 3 basis points to 5.01%.
“The lack of any bad news on inflation supported government bonds on both sides of the Atlantic, with some added support from the fall in energy prices,” said Reid.
Traders are keenly waiting for Jerome Powell’s press conference scheduled for Wednesday and the Fed’s decision on its monetary policy. The Fed meeting has started today and will conclude tomorrow. It is widely expected that the Fed will hold rates.
Amazon (AMZN) is set to report its quarterly results after the bell today, along with Starbucks (SBUX) and Super Micro Computer (SMCI).
Turning to the economic calendar, the Q1 employment cost rose more than expected at +1.2% versus the forecasted +0.9% level.
Also, home prices rose more than expected in February according to the S&P CoreLogic Case-Shiller index.
The April Chicago PMI dropped to 37.9 compared to the anticipated figure of 44.9.
Moreover, the April Conference Board Consumer Confidence Index came in at 97.0 versus the expected 104.0 level.