Stocks slipped on Monday as a strong report on U.S. manufacturing raised doubts about potential interest rate cuts this year. The S&P 500 and Dow Jones Industrial Average both dipped from their record highs, while the Nasdaq composite managed to edge higher.
FedEx saw a 3.3% drop after announcing it will not extend its contract with the U.S. Postal Service for domestic air cargo delivery. Meanwhile, Trump Media & Technology Group lost over 20% of its value in a volatile trading session, with its Truth Social platform reporting significant financial losses.
Universal Health Services also faced a 4% decline following a $535 million damages award in a negligence case. On the positive side, Newmont’s stock rose as the price of gold continued to climb.
The bond market saw Treasury yields rise after the unexpected return to growth in U.S. manufacturing last month. This positive economic data has led to speculation about the Federal Reserve’s stance on interest rates, with traders adjusting their expectations for rate cuts.
While the Fed has raised rates to control inflation, recent strong economic indicators may delay potential rate cuts. Wall Street is closely watching upcoming economic reports for further insights into the Fed’s decision-making process.
Overall, traders are now considering the possibility of three rate cuts this year, with bond yields reflecting changing expectations. International markets also reacted to economic data, with mixed results in Asia and European markets closed for a holiday.
The latest developments in the U.S. economy and the Federal Reserve’s monetary policy will continue to influence market trends in the coming days. Stay tuned for more updates on this evolving story.
