US stocks opened lower on Tuesday as investors weighed signs the surprising resilience in the US economy might be starting to show cracks.
The S&P 500 (^GSPC) fell 0.3% while the tech-heavy Nasdaq Composite (^IXIC) dropped 0.2% after both indexes closed higher in the prior session during a bumpy day. The Dow Jones Industrial Average (^DJI) dropped about 0.4%.
Stocks have struggled to find a footing as investors face a dilemma over the path of interest rates. Recent weak manufacturing data has prompted Wall Street strategists to scale back their optimism for economic growth, which supports a case for rate cuts. But Federal Reserve officials have warned against hoping for a pivot anytime soon as they wait for inflation to cool sufficiently — and when that time comes isn’t clear.
Eyes will be on April job openings figures due later Tuesday for more clues to how the economy is holding up, with factory and durable goods orders also on the docket. The labor market update serves as a precursor to the crucial May jobs report on Friday — the data highlight of the week.
Meanwhile, the GameSpot (GME) rally — just one part of the jumpy summer start for stocks — lost steam on Tuesday, on the heels of a 21% surge for the meme darling. Shares of the video game retailer were down about 4%.
Elsewhere, India’s stock benchmark plummeted, wiping out almost $35 billion in value, after touching all-time highs on Monday. The vote count in the country’s national elections put the majority held by Prime Minister Narenda Modi’s ruling party in doubt, despite exit polls showing a likely landslide win.
