US Stocks Fall Again On Shifting Fed Outlook
Wall Street stocks fell for a second straight session on Monday as investors reassessed the prospects for lower interest rates ahead of key Federal Reserve congressional testimony.
US markets continued to pull back after Friday’s strong June jobs report left investors betting that the Fed would cut interest rates by less than previously thought.
Fed Chair Jerome Powell is scheduled to begin two days of congressional testimony on Wednesday.
Recent commentary from Powell and other Fed officials have opened the door to a possible interest rate cut as soon as this month in light of economic weakness. But the strong jobs data could shift that calculus, analysts said.
The Dow Jones Industrial Average dropped 0.4 percent to 26,806.14.
The broad-based S&P 500 shed 0.5 percent to 2,975.94, while the tech-rich Nasdaq Composite Index tumbled 0.8 percent to 8,098.38.
US stocks have pulled back since all three indices closed at records on Wednesday following a cease-fire on new tariff actions in the US-China trade war amid hopes for easier monetary policy.
Key data this week include consumer pricing, as well as the first batch of quarterly earnings reports from PepsiCo and Delta Air Lines, among others.
Among individual companies, Apple fell 2.1 after Rosenblatt Securities downgraded shares in part due to expected weakness in iPhone sales.
Boeing shed 1.3 percent after Saudi budget carrier flyadeal withdrew an order for Boeing’s grounded 737 MAX jets in favor of a fleet entirely composed of Airbus planes.
US shares of Deutsche Bank slid 6.1 percent after the German bank announced it would cut 18,000 jobs by 2022, around one-fifth of the workforce.