Wall Street slips amid Federal Reserve caution
The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December.
The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment.
Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts.
The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May.
The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile.
The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt.
The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people.
Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon.
"This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received.
Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month.
In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87.
The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going.
Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties.
Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July.
Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data.
AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares.
Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue.
Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent.
Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows.
The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill.
The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December.
The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment.
Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts.
The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May.
The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile.
The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt.
The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people.
Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon.
"This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received.
Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month.
In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87.
The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going.
Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties.
Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July.
Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data.
AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares.
Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue.
Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent.
Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows.
The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill.
The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December.
The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment.
Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts.
The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May.
The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile.
The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt.
The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people.
Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon.
"This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received.
Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month.
In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87.
The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going.
Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties.
Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July.
Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data.
AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares.
Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue.
Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent.
Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows.
The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill.
The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December.
The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment.
Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts.
The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May.
The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile.
The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt.
The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people.
Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon.
"This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received.
Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month.
In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87.
The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going.
Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties.
Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July.
Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data.
AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares.
Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue.
Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent.
Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows.
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Asian stocks have slipped and the dollar languished near three-and-a-half-year lows as investors weigh the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23 per cent in early trading on Wednesday, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78 per cent, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21 per cent. That maintained a bearish bias on the dollar. The euro last bought $US1.1793, just below the three-and-half-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $US3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245 per cent having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation "hard wires" a steady deterioration of the fiscal position and the debt trajectory of the US government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit US economic growth. That has left the dollar unloved, with the greenback down over 10 per cent for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $US3,332.19 per ounce, after surging one per cent in the previous session. The yellow metal is up 27 per cent this year on safe-haven flows. Asian stocks have slipped and the dollar languished near three-and-a-half-year lows as investors weigh the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23 per cent in early trading on Wednesday, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78 per cent, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21 per cent. That maintained a bearish bias on the dollar. The euro last bought $US1.1793, just below the three-and-half-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $US3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245 per cent having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation "hard wires" a steady deterioration of the fiscal position and the debt trajectory of the US government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit US economic growth. That has left the dollar unloved, with the greenback down over 10 per cent for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $US3,332.19 per ounce, after surging one per cent in the previous session. The yellow metal is up 27 per cent this year on safe-haven flows.
