US stock futures were lower early Tuesday morning.
On Monday, stocks gave up early gains and closed slightly lower on Monday as investors embarked on another busy week of corporate earnings and economic reports.
Major indices spent much of Monday’s session back and forth between gains and losses before falling in the afternoon.
The S&P 500 fell 11.66 points, or 0.3%, to 4118.63. The Dow Jones Industrial Average lost 46.73 points, or 0.1%, to end at 32798.40. The technology-focused Nasdaq Composite Index lost 21.71 or 0.2% to 12368.98.
US equities have rallied furiously in recent weeks, spurred by positive signs of earnings and expectations that the Federal Reserve may not need to raise rates as aggressively as once thought, sparking a rally of government bonds alongside equities.
August’s moderate opening follows a brisk rally for equities last month: July was the best month for the S&P 500 index since November 2020.
But this week’s string of economic reports and corporate earnings have made traders “a little cautious,” said Lindsey Bell, chief markets and money strategist at Ally Invest.
“Investors are still judging where we’re breaking from here — further to the upside or the reverse,” Bell said.
The benchmark S&P 500 index fell 11.66 points to 4,118.63. It comes from a 9.1% gain in July but continues to fall 13.6% this year.
The Dow lost 46.73 points to close at 32,798.40, while the Nasdaq dropped 21.71 points to 12,368.98. The 2000 Russell finished 1.92 points lower at 1,883.31.
Banks, healthcare companies and technology stocks were among the largest weights in the S&P 500.
JPMorgan Chase was down 1%, UnitedHealth Group was down 1.3% and Intuit was down 1.7%.
Meanwhile, Asian stocks were lower on Tuesday.
Japan’s Nikkei fell 1.54%, while Taiwan’s stock index fell 1.87%. Chinese blue chips were down 2.47% and Hong Kong’s Hang Seng lost 2.71%.
Australian equities contained the declines and the Australian dollar weakened after the central bank raised its key rate by an expected 50 basis points, with markets interpreting the changes in the accompanying policy statement as moderate.
“We knew from the start that (Pelosi’s journey) would be a driver of risk-off sentiment in the region,” said Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong.