US stocks dial back gains in early trading

NEW YORK: Major Wall Street indices fell from record-setting levels at the start of trading Tuesday, as investors opted to pause ahead of major data releases.

The S&P 500 and Nasdaq closed at all-time highs Monday for the second consecutive session after traders were cheered by Federal Reserve Chair Jerome Powell's announcement that the central bank would begin tapering its stimulus but could wait until later in the year.

Charles Schwab investment bank said investor sentiment has shifted "as the markets continue to grapple with the lingering Delta variant, Fed tapering expectations, and as we likely decelerate from peak earnings and economic growth rates."

About 15 minutes into trading, the benchmark Dow Jones Industrial Average lost 0.2 percent to 35,347.65.

With Fed suspense over, US stocks continue advance

The broad-based S&P 500 was down 0.1 percent at 4,523.02, and the tech-rich Nasdaq Composite Index lost 0.1 percent to 15,246.32.

Markets are eyeing key US employment data set for release this week, which will give an update on the health of the labor market as it bounces back from the pandemic.

The ADP private hiring report is due out on Wednesday, while the Labor Department will release official employment data for August on Friday, which is expected to show the economy adding 750,000 jobs, a big gain but fewer than in July.