S&P500 and Dow Jones: US Indices Hold Gains as Traders Await Inflation Forecast

S&P 500 Trades Flat Late Session as Investors Weigh Jobs Revision and Fed Path

Shortly after the mid-session Tuesday, the S&P 500 was little changed, up just 0.2%, as traders digested a sharp downward revision to U.S. payroll data and its implications for monetary policy. The Nasdaq Composite mirrored the S&P’s modest gain, while the Dow Jones Industrial Average led with a 214-point climb, or 0.5%.

Market focus turned to the Bureau of Labor Statistics’ update showing that payroll gains for the 12 months through March were overestimated by 911,000—the steepest downward revision since at least 2002. Though backward-looking, the scale of the adjustment added to investor concern that the labor market may be weakening faster than expected.

Could the Federal Reserve Respond Sooner to Slowing Job Growth?

The latest data, combined with last week’s soft nonfarm payrolls, is feeding into expectations that the Federal Reserve could move forward with rate cuts. JPMorgan CEO Jamie Dimon noted the economy appears to be slowing, though he stopped short of calling for a recession. Chris Zaccarelli of Northlight Asset Management warned the continued deterioration in jobs could stall the recent equity rally, even if it increases the odds of rate relief.

Traders are now focused on upcoming inflation releases. The August Producer Price Index is due out Wednesday morning, followed by Thursday’s Consumer Price Index. Both reports will be pivotal in shaping the Fed’s tone heading into next week’s policy meeting.

Which Sectors Are Driving the S&P 500 This Session?

Energy and communication services are leading the S&P 500 intraday, each up around 1.4%, as crude prices remain firm and select tech names continue to attract buyers. Health care and utilities are both up 0.8%, offering defensive support. Materials are the weakest link, down 1.7%, followed by a 0.8% decline in industrials as growth concerns resurface.

Which Stocks Are Hitting New Highs or Moving on News?

Fourteen S&P 500 names have hit fresh 52-week highs so far today, with seven notching new all-time highs, including Goldman Sachs, Morgan Stanley, Boston Scientific, and Live Nation.

Notable movers include Metsera (+5%) on a bullish analyst initiation, Kingsoft Cloud (+13%) following an upgrade tied to AI momentum, and Brighthouse Financial (+11%) on takeover speculation.

UnitedHealth is up over 6% after highlighting strong Medicare expectations, while Albemarle is down 11% after a Chinese lithium mine restart spurred oversupply fears.

What’s the Market Outlook Heading Into Key Inflation Data?

With rate cut hopes rising but inflation data looming, traders are walking a tightrope. If Thursday’s CPI report surprises to the upside, it could revive stagflation fears and disrupt the recent resilience in equities.

For now, the S&P 500 remains range-bound intraday, with sector rotation and stock-specific news guiding the tape ahead of more decisive catalysts.

More Information in our Economic Calendar.