US markets end mixed; FOMC eyed

US stocks ended narrowly mixed as the tech-heavy Nasdaq moved sharply lower while the Dow ended the day firmly positive. The Nasdaq tumbled 222.78 points or 1.3 percent to 17,147.41, ending the session at its lowest closing level in well over a month. The S&P 500 also fell 27.10 points or 0.5 percent to 5,436.44, while the narrower Dow climbed 203.40 points or 0.5 percent to 40,743.33. The steep drop by the Nasdaq came as tech stocks came under pressure as Nvidia (NVDA) plunging by 7.0 percent to a two-month closing low. Microsoft lost 1% ahead of its earnings release after the closing bell, while Apple, Alphabet, and Meta were muted ahead of their reports later in the week.

The US dollar is staying cautiously lower ahead of upcoming Federal Reserves monetary policy meeting for any indications of a potential rate cut in September. On Tuesday, data showed that the number of job openings was little changed at 8.2 million in June, but came slightly above forecasts of 8 million. Investors also look ahead to more labor market data later this week including JOLTS and the highly-anticipated monthly jobs report.

In the bond market, treasuries moved higher over the course of the session, extending a recent advance. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.5 basis points to a four-month closing low of 4.143 percent.

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