U.S. stocks were tumbling in the final hour of trading on Tuesday as technology shares came under pressure, dragged down by Apple\u2019s continued slump, while investors remained cautious ahead of closely watched remarks by Federal Reserve Chair Jerome Powell and labor-market data, both of which should offer more clues on the central bank\u2019s interest-rate path and the health of the economy. <\/p>\n
How stocks are trading<\/h2>\n\n- \n The S&P 500
\n SPX<\/a>
\n was down 70 points, or 1.4%, to 5,061.<\/p>\n<\/li>\n- \n The Dow Jones Industrial Average
\n DJIA<\/a>
\n was falling 502 points, or 1.3%, to 38,486.<\/p>\n<\/li>\n- \n The Nasdaq Composite was sliding 327 points, or 2.1%, to 15,879.<\/p>\n<\/li>\n<\/ul>\n
The three major indexes were on track for back-to-back losses after the S&P 500 and Nasdaq pulled back Monday<\/a> from record finishes scored at the end of last week.<\/p>\n\nWhat\u2019s driving markets<\/h2>\n
Tuesday\u2019s trading session saw investors taking a cautious tone. So far, the year has been good for markets as investors have navigated moderating inflation, consistent economic growth and uncertainty over the Federal Reserve\u2019s next move on interest rates. <\/p>\n
However, until investors see a fresh round of data and speeches on these topics later this week, it\u2019s still a risk-off mood in the financial market \u2014 at least for equities. Bitcoin
\n BTCUSD,
\n -7.73%<\/bg-quote><\/a>
\n notched a new record high on Tuesday morning, briefly moving past $69,000. <\/a><\/p>\nThere\u2019s good reason for the scrutiny, said Quincy Krosby, chief global strategist at LPL Financial. \u201cThis is an important week for\u00a0a market that has been pricing in a host, a series, of rate cuts,\u201d she told MarketWatch via phone on Tuesday.<\/p>\n
Investors will brace for remarks from Powell, who is expected to deliver monetary-policy updates to the House of Representatives on Wednesday and to the Senate on Thursday, while listening hard for clues on the pace, timing and extent of any interest-rate cuts for the rest of 2024, she said.<\/p>\n
Until then, Krosby saw the selloff on Tuesday as a \u201chealthy\u201d consolidation, because investors \u201cneed to digest the gains\u201d from last few weeks. <\/p>\n
Greg W. Halter, director of research at Carnegie Investment Counsel, also said the pullback was natural, adding that some investors may seize the chance to take profits and shift into the remaining 493 companies in the S&P 500 that are trading at lower valuations. <\/p>\n
\u201cThe market is broadening out, but the question of debate is can the market [continue to] go higher if you don\u2019t have Microsoft
\n MSFT,
\n -3.16%<\/bg-quote><\/a>,<\/span>
\n Apple and Nvidia
\n NVDA,
\n -0.09%<\/bg-quote><\/a>
\n being the leaders,\u201d Halter said in a phone interview with MarketWatch on Tuesday. <\/p>\nKim Forrest, founder and chief investment officer at\u00a0Bokeh\u00a0Capital Partners, said this week\u2019s start is reminiscent of last week\u2019s. At that time, the big worry was that the Fed\u2019s preferred PCE inflation gauge<\/a>, due out at the end of last week, would come in hotter than expected. However, the February inflation numbers were in line with expectations, propelling the S&P 500 and the Nasdaq to their record highs on Friday, according to Dow Jones Market Data. <\/p>\nNow it\u2019s a new week and \u201cwe\u2019re back to freaking out,\u201d Forrest said in a phone interview on Tuesday. This time, investors are also awaiting a batch of labor-market data for signs of whether the job market remains resilient, which could discourage policy makers from cutting rates.<\/p>\n
In U.S. economic data on Tuesday, the ISM service-sector PMI fell to 52.6% in February from 53.4% in January, marking a bigger-than-expected drop<\/a>. Still, a number over 50% signals economic expansion, where the index has been since December 2022. <\/p>\nFactory orders also fell 3.6% <\/a>in January, dragged down by fewer contracts for passenger airplanes from Boeing. <\/p>\nTuesday also saw pressure from a dip in Apple Inc.\u2019s
\n AAPL,
\n -2.89%<\/bg-quote><\/a>
\n shares weighing on the Dow, Nasdaq and S&P 500. The company\u2019s shares were sagging more than 2.9% after a report that iPhone sales in China fell 24% during the first six weeks of the year<\/a>.<\/p>\nCompanies in focus<\/h2>\n\n- \n Target Corp.<\/strong> shares
\n TGT,
\n +11.58%<\/bg-quote><\/a>
\n were jumping 11.4% on Tuesday afternoon after fourth-quarter earnings<\/a> from the retailer showed expectation-exceeding metrics like lower markdown rates and lower inventory-related costs. <\/p>\n<\/li>\n- \n MicroStrategy Inc.<\/strong> shares
\n MSTR,
\n -16.04%<\/bg-quote><\/a>
\n were falling more than 13%. The business-analytics software company has built up its bitcoin exposure as its primary treasury asset and reaffirmed that approach in a plan to offer convertible debt<\/a>. The company\u2019s stock ran to a 24-year high<\/a> on Monday.<\/p>\n<\/li>\n<\/ul>\n
\n SPX<\/a>
\n was down 70 points, or 1.4%, to 5,061.<\/p>\n<\/li>\n
\n DJIA<\/a>
\n was falling 502 points, or 1.3%, to 38,486.<\/p>\n<\/li>\n
The three major indexes were on track for back-to-back losses after the S&P 500 and Nasdaq pulled back Monday<\/a> from record finishes scored at the end of last week.<\/p>\n Tuesday\u2019s trading session saw investors taking a cautious tone. So far, the year has been good for markets as investors have navigated moderating inflation, consistent economic growth and uncertainty over the Federal Reserve\u2019s next move on interest rates. <\/p>\n However, until investors see a fresh round of data and speeches on these topics later this week, it\u2019s still a risk-off mood in the financial market \u2014 at least for equities. Bitcoin There\u2019s good reason for the scrutiny, said Quincy Krosby, chief global strategist at LPL Financial. \u201cThis is an important week for\u00a0a market that has been pricing in a host, a series, of rate cuts,\u201d she told MarketWatch via phone on Tuesday.<\/p>\n Investors will brace for remarks from Powell, who is expected to deliver monetary-policy updates to the House of Representatives on Wednesday and to the Senate on Thursday, while listening hard for clues on the pace, timing and extent of any interest-rate cuts for the rest of 2024, she said.<\/p>\n Until then, Krosby saw the selloff on Tuesday as a \u201chealthy\u201d consolidation, because investors \u201cneed to digest the gains\u201d from last few weeks. <\/p>\n Greg W. Halter, director of research at Carnegie Investment Counsel, also said the pullback was natural, adding that some investors may seize the chance to take profits and shift into the remaining 493 companies in the S&P 500 that are trading at lower valuations. <\/p>\n \u201cThe market is broadening out, but the question of debate is can the market [continue to] go higher if you don\u2019t have Microsoft Kim Forrest, founder and chief investment officer at\u00a0Bokeh\u00a0Capital Partners, said this week\u2019s start is reminiscent of last week\u2019s. At that time, the big worry was that the Fed\u2019s preferred PCE inflation gauge<\/a>, due out at the end of last week, would come in hotter than expected. However, the February inflation numbers were in line with expectations, propelling the S&P 500 and the Nasdaq to their record highs on Friday, according to Dow Jones Market Data. <\/p>\n Now it\u2019s a new week and \u201cwe\u2019re back to freaking out,\u201d Forrest said in a phone interview on Tuesday. This time, investors are also awaiting a batch of labor-market data for signs of whether the job market remains resilient, which could discourage policy makers from cutting rates.<\/p>\n In U.S. economic data on Tuesday, the ISM service-sector PMI fell to 52.6% in February from 53.4% in January, marking a bigger-than-expected drop<\/a>. Still, a number over 50% signals economic expansion, where the index has been since December 2022. <\/p>\n Factory orders also fell 3.6% <\/a>in January, dragged down by fewer contracts for passenger airplanes from Boeing. <\/p>\n Tuesday also saw pressure from a dip in Apple Inc.\u2019sWhat\u2019s driving markets<\/h2>\n
\n BTCUSD,
\n
\n notched a new record high on Tuesday morning, briefly moving past $69,000. <\/a><\/p>\n
\n MSFT,
\n
\n Apple and Nvidia
\n NVDA,
\n
\n being the leaders,\u201d Halter said in a phone interview with MarketWatch on Tuesday. <\/p>\n
\n AAPL,
\n
\n shares weighing on the Dow, Nasdaq and S&P 500. The company\u2019s shares were sagging more than 2.9% after a report that iPhone sales in China fell 24% during the first six weeks of the year<\/a>.<\/p>\nCompanies in focus<\/h2>\n
\n
\n TGT,
\n
\n were jumping 11.4% on Tuesday afternoon after fourth-quarter earnings<\/a> from the retailer showed expectation-exceeding metrics like lower markdown rates and lower inventory-related costs. <\/p>\n<\/li>\n
\n MSTR,
\n
\n were falling more than 13%. The business-analytics software company has built up its bitcoin exposure as its primary treasury asset and reaffirmed that approach in a plan to offer convertible debt<\/a>. The company\u2019s stock ran to a 24-year high<\/a> on Monday.<\/p>\n<\/li>\n<\/ul>\n