Wall Street Pulls Back After Fed Rate Cut Hopes
Markets took a breather today after last week’s strong rally on Wall Street. Stocks slipped in early trading Monday, just days after investors had pushed major indexes to record levels on optimism that the U.S. Federal Reserve might deliver more interest rate cuts in September.
The S&P 500 edged down about 0.2 percent, holding just below its all-time high. The Dow Jones Industrial Average dropped by roughly 110 points, or 0.3 percent, after setting a new record on Friday. The Nasdaq composite dipped by 0.1 percent, giving back a small slice of last week’s impressive gains.
One of the biggest moves of the morning came from Keurig Dr Pepper. The stock sank nearly 8 percent after the company announced a massive deal to acquire JDE Peet’s, the owner of Peet’s Coffee. The purchase price was valued at around 18 billion U.S. dollars, making it one of the larger deals in the consumer sector this year.
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In the bond market, Treasury yields were pushed higher. The yield on the 10-year Treasury rose to 4.29 percent, up from 4.25 percent late Friday. The two-year Treasury yield also ticked higher, from 3.70 percent to 3.73 percent. These increases came after yields had tumbled on Friday, reflecting shifting expectations that the Fed could soon cut its key lending rate to support the economy.
Overseas markets painted a mixed picture. European indexes moved in different directions, while Asian markets closed lower overnight, echoing some of the caution that filtered into U.S. trading.
Investors are now turning their attention toward the final round of corporate earnings reports for this season. Nvidia is set to release its latest results on Wednesday, and that update is being watched especially closely. As one of the leading suppliers of chips for artificial intelligence, and given its heavy weighting in the stock indexes, Nvidia has been a driving force behind much of the market’s gains this year. Any surprise in its earnings could ripple through the broader market.
Later in the week, retailers like Best Buy and Dollar General will post results. Those numbers will be scrutinized not only for sales performance but also for what they signal about costs, pricing pressures, and the impact of tariffs on consumer goods. Retail earnings often provide a clearer snapshot of how households are navigating inflation and shifting spending patterns.
So while last week ended on a high note, today’s trading session reminded investors that markets rarely move in a straight line. Optimism about rate cuts and strong tech earnings is still in play, but short-term pullbacks and caution around big deals or bond market moves continue to shape the day-to-day story on Wall Street.
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