Stock market today: Indexes slide as investors assess weak economic data

A stock trader at work at the New York Stock Exchange on February 24, 2020.Johannes Eiselle/Getty Images

• Markets continued to edge lower after Monday's ISM Manufacturing data fell below estimates.

• "While a pull-back in US economic data helps bolster the likelihood of Fed rate cuts, it does so for all the wrong reasons."

• Investors will be watching new jobs data this week, culminating in the May nonfarm payroll report on Friday.

US stocks slumped lower on Tuesday as early June data left investors uncertain about strength in the economy.

The market retreat began Monday, after the ISM Manufacturing index report came in lower than expected, and below the previous month's figure.

"While a pull-back in US economic data helps bolster the likelihood of Fed rate cuts, it does so for all the wrong reasons. If this were to continue, then investors will be encouraged to take money out of stocks and seek out alternatives," Trade Nation's Senior Market Analyst David Morrison said.

Concerned investors will turn their attention toward job data later in the week, with job openings data set to be published on Tuesday. Economists anticipate a drop in openings for the third consecutive month.

The crucial labor report will come on, when May's payroll numbers are set to be released. Economists expect 178,000 added jobs that month, about in line with April's figure. Bank of America said in a note on Monday that a reading of 125,000-175,000 would be a Goldilocks scenario for the stock market, as it hints at continued strength in the labor market while leaving the door open for the Fed to ease monetary policy.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday: 

• S&P 500: 5,265.98, down 0.34%

• Dow Jones Industrial Average: 38,489.81, down 0.21% (-80.12 points)

• Nasdaq composite: 16,780.19, down 0.27%

Here's what else happened today:

• Famous short seller Andrew Left is betting against GameStop once more after losing in 2021's meme stock rally.

• Semiconductor stocks won't peak until 2026. Here are the trades to focus on, according to Bank of America.

• This is what this week's jobs report needs to show for Goldilocks equity momentum to continue, the bank said.

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil dropped 1.3% to $73 a barrel. Brent crude, the international benchmark, slumped by 1.6% to $77.09 a barrel.

• Gold slid 0.59% to $2,329 per ounce.

• The 10-year Treasury yield dropped four basis points to 4.359%.

• Bitcoin inched up 0.28% to $68,989.

Read the original article on Business Insider