Overview of the Market Movement
On Tuesday morning, all three major indices on Wall Street are experiencing a decline. Despite investors anticipating interest rate cuts, the weak US service sector data for July has caused stocks to fall. Traders continue to assess second-quarter reports.
- The Dow Jones Industrial Average, consisting of 30 large company stocks, is down by 0.25% to 44,061.73.
- The S&P 500, which includes the most valuable companies, is off by 0.50% to 6,298.16.
- The Nasdaq Composite, a technology-heavy index, is down by 0.64% to 20,919.83.
US Service Sector Stalls, Trade Uncertainty Persists
The unexpected stall in US service sector growth for July is attributed to minimal movement in new orders and a decline in hiring, highlighting the ongoing uncertainty surrounding President Donald Trump’s trade policies.
Investor Expectations and Market Reaction
Despite investors’ expectations of an interest rate cut in the upcoming Federal Reserve meeting, with a 90% probability according to FedWach futures tracking, market enthusiasm has waned today due to signals of protectionist impacts from the White House.
Notable Stock Movements
Among the leading stocks, Pfizer shares have risen by 3.59% after the company raised its earnings guidance and reported strong sales. Pfizer increased its projected earnings per share for 2025 to a range of $2.90 to $3.10.
Key Questions and Answers
- Q: Why are stocks falling today despite expectations of interest rate cuts? A: The weak US service sector data for July, showing stalled growth and decreased hiring due to trade policy uncertainty, has caused investors to reconsider their optimism.
- Q: What is the current probability of an interest rate cut according to the market? A: Market expectations, based on FedWach futures tracking, suggest a 90% probability of an interest rate cut in the upcoming Federal Reserve meeting.
- Q: How has Pfizer’s performance impacted the market today? A: Pfizer’s shares have risen by 3.59% after the company raised its earnings guidance and reported strong sales, contributing positively to the market amid broader declines.
