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US stocks close lower ahead of Powell’s testimony, jobs data


The S&P 500 closed slightly lower, while the Nasdaq and the Dow saw more pronounced declines

Wall Street stocks ended the day with losses on Monday, pulling back from their previous record highs. Concurrently, U.S. Treasury yields rose as investors turned their attention to upcoming key jobs data and Federal Reserve Chair Jerome Powell’s congressional testimony set for later in the week.

Bitcoin’s movements were closely watched as the crypto currency neared its first record high since November 2021.

After European stocks retreated from their record levels, major U.S. equity indexes also failed to build on gains following Friday’s record-breaking rally.

Throughout the session, all three U.S. indexes encountered difficulties in making progress, with momentum waning in the final hour.

The S&P 500 closed slightly lower, while the Nasdaq and the Dow saw more pronounced declines.

Investors appeared cautious ahead of Powell’s two-day congressional testimony, the European Central Bank’s policy decision, and the release of the Labor Department’s crucial February jobs report early on Friday.

Nothing is really happening (Monday) and that is why the stock market is undulating within small boundaries, said Sam Stovall, chief investment strategist of CFRA Research in New York. The market is waiting for Jerome Powell’s testimony to Congress, it’s waiting for employment data on Friday and wondering whether we are going to get any kind of meaningful digestion of recent gains.

Analysts will scrutinize Powell’s testimony and the jobs data for any indications regarding the timing and extent of expected interest rate cuts by the Fed this year.

On average, analysts expect the U.S. economy to have added 200,000 jobs in February, with the unemployment rate holding steady at 3.7%.

The Dow Jones Industrial Average fell 97.55 points, or 0.25%, to 38,989.83, the S&P 500 dropped 6.13 points, or 0.12%, to 5,130.95, and the Nasdaq Composite declined 67.43 points, or 0.41%, to 16,207.51.

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