Wall Street Slumps Amid Job Market Woes and Fed Speculations

Wall Street's main indexes dipped following a report highlighting job market concerns. This halted a prior rally that lifted the S&P 500 and Nasdaq. Economists are eyeing potential changes in the Fed's monetary policy, and traders anticipate a rate cut, as financials and tech stocks see losses.

Wall Street's primary indexes experienced a downturn on Tuesday, influenced by a report from the New York Federal Reserve that spotlighted lingering concerns over the job market. This development stopped a rally which saw the S&P 500 and Nasdaq reaching new record closing highs just the day before.

The report, revealing a slight uptick in expected inflation from 3.2% in August to 3.4%, comes after seven days of a prolonged government shutdown, which had been obstructing key data releases. Economists are tracking these trends closely, considering their potential impact on consumer spending and market valuations.

A sharp decline in tech stocks significantly impacted the Nasdaq, with companies like Broadcom and Oracle leading the losses. Meanwhile, market participants are speculating about a potential interest rate cut by the Federal Reserve later this month, given signs of a weakening job market.

(With inputs from agencies.)