Wall Street takes a breather as tech stocks drag, S&P500 snaps six-day gaining streak

Investors are now bracing for comments from Federal Reserve officials later in the week, hoping for clues on the direction of interest rates amid a still-cloudy macro backdrop, which includes lingering tariff concerns and simmering recession worries.

U.S. markets took a step back on Tuesday, snapping a multi-day winning streak as investors locked in gains after a strong six-day run.

The S&P 500 dipped 0.5 percent, while the tech-heavy Nasdaq Composite lost 0.7 percent. The Dow Jones Industrial Average ended the day down 116 points, or 0.3 percent.

Technology stocks were at the centre of the pullback, with the sector leading losses among S&P 500 groups. Heavyweights like Nvidia, Meta, Apple, and Microsoft all traded lower, weighing on sentiment.

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Despite the day’s losses, the broader market remains within striking distance of all-time highs. The S&P 500 had notched six straight gains through Monday—its longest winning streak since early May—before running into resistance.

Among individual movers, Home Depot inched higher by 2 percent after reaffirming its full-year forecast. The home improvement giant expects revenue to grow 2.8 percent in FY24, and the company has no immediate plans to raise prices, even as tariffs remain a concern.

Viking Holdings, however, plunged 5.6 percent despite a better-than-expected earnings report. The cruise operator posted a smaller loss of 24 cents per share, excluding items, on $897.1 million in revenue, outperforming analyst expectations, but not enough to shore up the stock.

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In contrast, Hewlett Packard Enterprise pared gains to trade flat despite receiving an upgrade from Evercore ISI. The brokerage called the stock’s current setup a compelling entry point, citing a favourable risk-reward balance for investors looking at cloud tech plays.

Investors are now bracing for comments from Federal Reserve officials later in the week, hoping for clues on the direction of interest rates amid a still-cloudy macro backdrop, which includes lingering tariff concerns and simmering recession worries.

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