NEW YORK: US stocks slipped early Tuesday as Wall Street traders consolidated recent gains and looked ahead to the Federal Reserve chair’s visit to Congress later this week.

US Fed chair Jerome Powell is likely to be grilled by lawmakers over when the central bank could begin much-anticipated interest rate cuts when he visits Capitol Hill on Wednesday and Thursday.

The Fed’s key lending rate remains at a 23-year high as it battles inflation, which remains stuck north of its long-term target of two percent.

Wall St slips after record-breaking rally

Shortly after markets opened on Wall Street, the Dow Jones Industrial Average was down 0.5 percent at 38,789.02, while the broad-based S&P 500 fell 0.6 percent to 5,102.74.

And the Nasdaq Composite slipped 1.0 percent to 16,049.26, dragged down by Apple, whose shares fell 2.3 percent after it reported a 24 percent decline in China sales.

Traders were also looking ahead to fresh services data later Tuesday for signs of how robust the sector remains in the face of high interest rates.

“We have macro news coming out at 10 o’clock, and I think the market is basically awaiting Powell’s testimony tomorrow, and, of course, the employment data on Friday,” Peter Cardillo from Spartan Capital told AFP.

“Until we get better insight of what the Fed is thinking, in terms of rate cuts, the market here is probably undergoing a minor pullback,” he added.

Auto maker Tesla also saw its shares fall in early trading Tuesday after its Berlin plant was forced to halt production due to a suspected arson attack nearby.