NEW YORK: Wall Street stocks dipped for a second straight session early Tuesday as markets awaited US employment data and digested Moody’s downgraded outlook on China.
After a torrid November, stocks have pulled back to start the final trading month of 2023, with traders seeing the pause as typical after a big rally.
Markets are confident the Federal Reserve will not hike interest rates further. Employment data later this week is expected to show a slowing US jobs market.
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 36,051.24.
Wall St rally loses steam as data-heavy week looms
The broad-based S&P 500 shed 0.3 percent to 4,556.38, while the tech-rich Nasdaq Composite Index slipped 0.1 percent to 14,172.41.
Analysts cited Moody’s downcast appraisal of China as a drag on sentiment. On Tuesday, the ratings agency downgraded the outlook on China’s credit rating to “negative” from “stable” on the back of rising debt in the world’s second-largest economy.
Among individual companies, CVS Health jumped 2.9 percent after the Wall Street Journal reported the drugstore chain plans to simplify its model for selling pharmaceuticals.
Take-Two Interactive Software edged down 0.2 percent after a video trailer for its “Grand Theft Auto VI” game generated millions of views on YouTube. The game, featuring a first woman lead character and, is targeted for a 2025 release.
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