The stock market was quiet to start the day on Tuesday as Wall Street kept its attention on Washington, D.C.
The Dow Jones Industrial Average was down 35 points, or 0.1%. The S&P 500 was up 0.1%. The Nasdaq Composite was up 0.3%.
“The [S&P 500] now is up four of five trading days, which has been a solid response to the four-day losing streak from 5/20 – 5/23,” writes Frank Cappelleri, founder of technical analysis firm CappThesis. “The index now has closed above its intra-day midpoint in 11/15 trading days. That’s 73% of the time, which is high and obviously bullish.”
The yield on the 10-year Treasury note was down to 4.43%.
Bond market participants will pay close attention to negotiations in the U.S. Senate over President Donald Trump’s tax bill. And any updates on the administration’s tariff negotiations could be market moving.
Deutsche Bank analysts led by Binky Chadha raised their S&P 500 year-end price target by 400 points to 6550. They argue recent backtracking and the ruling from the U.S. Court of International trade last week will likely lower the impact of tariffs on companies.
“This hit is arguably well within normal variation for corporate planning, with companies repeatedly emphasizing that they have been battle tested by a series of crises over the past few years,” they wrote.
A wave of labor market data this week begins at 10 a.m. ET with the Job Openings and Labor Turnover survey.
“The market could be particularly sensitive to a soft Job Openings print as a drop below 7 million could stoke worries about the health of the labor market,” Sevens Report Research’s Tom Essaye.
But the big event of the week will be Friday’s jobs report, which should give Wall Street a better idea on how the labor market is holding up amid all the tariff-fueled uncertainty.