Stocks Lag After Six-day Climb as S&P 500 Nears Bull Market Territory

U.S. stocks dipped slightly on Tuesday, easing off after a six-day winning streak, as investors awaited a wave of speeches from Federal Reserve officials and continued to evaluate corporate earnings results.

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The S&P 500 slipped 0.3% in early morning trading in New York, while the tech-heavy Nasdaq 100 dropped 0.5%. These modest declines followed a volatile start to the week, where the market staged a sharp intraday reversal—bouncing back from a 1% dip in the S&P 500 that had been triggered by Moody’s downgrade of the U.S. government’s credit rating.

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Despite Tuesday’s pullback, the S&P 500 has been on an impressive run. The index has posted gains in 18 of the past 22 trading sessions—something that has happened only eight times since 1980. This kind of performance often aligns with recoveries from bear markets. It also marks a sharp rebound after the index’s steepest monthly decline since the early days of the Covid-19 pandemic, which was partly fueled by fears of an escalating global trade war under the current administration.

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Matt Maley, chief market strategist at Miller Tabak + Co., commented on the recent strength, saying, “The rally is starting to get a little tired.” He added that persistently high Treasury yields have begun to weigh on investor enthusiasm. “With yields still hovering near recent highs, stock investors are becoming a bit more cautious. That’s a

natural response following such a strong rally,” Maley noted.

While U.S. equities took a breather, optimism for European markets has grown. According to a Bloomberg survey of 20 analysts from firms like JPMorgan Chase and Citigroup, some Wall Street strategists believe European stocks could soon outperform their U.S. counterparts by the widest margin in two decades.

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Back in the U.S., economic updates remain front and center. Seven Federal Reserve officials are scheduled to deliver speeches across the country on Tuesday, and markets are paying close attention for any signals on the future path of interest rates. On Monday, two Fed policymakers suggested that rate cuts are unlikely before September due to the ongoing uncertainty surrounding the economic outlook.

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Another major focus for investors on Tuesday is Alphabet Inc., as the company hosts its annual Google I/O developer conference. The event’s keynote speech is slated for 4:30 p.m. ET, and much attention is expected to be on Google’s progress in integrating artificial intelligence into its search platform. According to Bloomberg Intelligence, a broader rollout of AI-driven features in Google Search could take center stage at the conference.

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“Traders are bracing for a sea of headlines today,” said Dave Lutz, macro strategist at JonesTrading. A 30-year Wall Street veteran, Lutz noted that there’s “plenty to keep us busy,” with a combination of Fed commentary, corporate developments, and geopolitical events shaping market sentiment.

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On the international stage, finance ministers and central bank leaders from the Group of Seven (G7) countries are gathering in Canada for a summit starting Tuesday. Their discussions are expected to cover a range of pressing issues, including global economic stability, the development of artificial intelligence, and the ongoing war between Russia and Ukraine.

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In a noteworthy diplomatic development, U.S. President Donald Trump announced on social media that following a two-hour phone call with Russian President Vladimir Putin, Ukraine and Russia have agreed to begin ceasefire negotiations. However, the talks may proceed without direct U.S. involvement, and Trump provided no clear indication of sanctions or a timeline for resolution.

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Turning to individual stock movers, Home Depot shares rose after the home improvement retailer reaffirmed its full-year guidance, with steady U.S. sales suggesting that consumer spending remains resilient despite broader economic concerns. Meanwhile, shares of Trip.com, a China-based travel service provider, declined after the company released its first-quarter financial results, which failed to impress investors.

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Biotech firm ImmunityBio saw its stock climb after Piper Sandler upgraded it, citing encouraging early momentum for the newly approved bladder cancer treatment, Anktiva. The investment firm highlighted strong initial uptake for the drug, suggesting a promising launch trajectory.

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Altogether, Tuesday’s market action reflected a mix of caution and anticipation. Investors are digesting a complex web of economic data, central bank commentary, geopolitical developments, and earnings news. As the week progresses, attention will likely remain fixed on Federal Reserve signals, corporate updates, and the unfolding narrative around AI innovation and global diplomacy.

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