Today’s Market Wrap Up and a Glimpse Into Wednesday

Stocks interrupted their winning streak as investors took a breather to start the holiday-shortened week on a sour note. The S&P 500 finished slightly lower, while the Dow Jones Industrial Average shed more than 200 points and the tech-heavy Nasdaq managed to eke out some gains.

The S&P ended its seven-day record-close stretch, while the Dow similarly failed to build on its all-time high. There was no single negative event to drag stocks lower, though the ISM’s purchasing managers’ index for June came in slightly weaker than expected.

And even though last week’s employment report showed robust jobs growth, the unemployment rate is still hovering at an alarmingly high 5.9%. Trading was relatively light, suggesting that the summer doldrums might stick around for a while.

Tech was the bright spot, buoyed by Amazon, which bucked the downward trend and raced ahead by nearly 5%. The stock benefited from a decision by the government to shutter a multi-billion-dollar JEDI cloud contract it had with Microsoft, potentially paving the way for Amazon to muscle its way in.

Stocks to Watch

Wall Street Bets, the Reddit account that started the meme stock craze, has taken its subreddit away from public view. The popular account has switched the forum to private mode, essentially blocking anybody who has not been approved from viewing or participating in the discussion.

As fate would have it, a couple of meme stocks were punished on Tuesday, chief among which was Clover Health, which shaved nearly 15% off its value. AMC Entertainment shed almost 4%, failing to maintain the gains it achieved after revealing it would nix plans to pursue a sale of 25 million shares.

In true Amazon fashion, GameStop has leased space in Reno, Nev. for a fulfillment center to house its video games and electronic components. The facility, which will be operational next year, will be used to accelerate shipments to West Coast customers. GameStop recently tapped Amazon alum, Matt Furlong, as its CEO, and the company’s digital strategy is beginning to take shape.

Look Ahead

The FOMC meeting minutes will be released on Wednesday afternoon, giving investors the opportunity to see exactly what policymakers are thinking. The Fed has already tipped its hand to upcoming more hawkish monetary policy, and investors are hunting details on when as well as any indication of inflation trends.