US markets today: Wall Street heads for fifth straight monthly gain; investors watch jobs, Fed, and government shutdown

US equities edged cautiously on Tuesday as Wall Street approached the end of another strong month, with investors balancing optimism over corporate earnings against economic uncertainty and the potential for a government shutdown.The S&P 500 slipped 0.2% in early trading, while the Dow Jones Industrial Average fell 27 points, or 0.1%. The Nasdaq composite was down 0.2%, yet all three indexes remain positioned for a fifth consecutive monthly gain after last week’s record highs, AP reported.Energy stocks led declines as crude prices remained under pressure. Halliburton shares fell 2%, adding to the week’s losses in the oil sector. Technology gains provided some counterweight, with CoreWeave climbing 15.6% after confirming a $14.2 billion contract with Meta Platforms for cloud computing services under an existing agreement, highlighting continued strong demand for digital infrastructure.Investors are closely monitoring two key reports due later in the day. The first will provide a snapshot of US consumer confidence amid a slower job market and persistent inflation. The second, detailing job openings at the end of August, is expected to provide clues on labour market strength and its impact on the Federal Reserve’s policy trajectory. Analysts are hoping for balanced data—neither too strong to restrain rate cuts nor too weak to raise recession fears.The Fed delivered its first rate reduction of the year earlier this month and signalled more cuts may follow before year-end 2026. Policymakers aim to support the job market after months of steady rates, yet stronger-than-expected labour data could limit the central bank’s flexibility, while weaker readings could exacerbate recession concerns. Markets, already stretched by record valuations since April lows, remain sensitive to such developments.Adding to investor caution is the looming possibility of a US government shutdown. Political deadlock in Washington could halt funding at the end of the day, potentially delaying the release of key economic data, including Friday’s monthly jobs report. The Department of Labor has warned that the Bureau of Labor Statistics would cease operations entirely during a shutdown, raising concerns over data disruptions for market participants.On the corporate front, Vail Resorts slipped 4.6% after posting a larger quarterly loss than expected and signalling limited ski pass sales growth for the upcoming season. Lamb Weston, a major supplier of frozen potato products, jumped 6.3% after reporting better-than-expected quarterly profits, reflecting robust demand.Global markets were mixed, with European and Asian indices moving modestly as investors digested economic signals and geopolitical developments. In the bond market, the 10-year US Treasury yield eased to 4.12% from 4.15% late Monday, reflecting cautious sentiment amid ongoing uncertainty.