On Friday, investors partied. On Monday, they're still coming down from the Power Hour. Today, stocks are in decline after Friday's Fed-flavored rally, which saw indexes like the Russell 2000 soar nearly 4% on fresh hopes of a September rate cut. Others like the S&P 500 and Nasdaq rose nearly 2%.
However, investors have been seen trimming bets a little today. That's to be understood after the big pops, with all four major indexes starting the day down. Their attention will now turn to data, which the Fed will use to 'lock in' the case for that September cut. We'll be getting a lot more big economic drops later this week which might tell traders if we're on the right track.
Of course, whether or not stocks will have a good week might well come down to whether or not earnings from chip giant Nvidia are any good. The largest component in the S&P 500 and Nasdaq-100 is reporting on Wednesday. It's sure to draw plenty of attention.
In the meantime, the Nasdaq (+0.29%) has soldiered back from its modest morning decline, with the S&P 500 (-0.05%) not far behind. The Dow (-0.40%) and Russell 2000 (-0.41%) were a little further behind. Still, any sort of pullback was to be understood after the Friday that stocks and crypto had. The 10Y, which also fell on Friday, rose 2.5 basis points to 4.283% today.
Monday Reading
-- Noah Weidner, markets reporter
