NEW YORK, May 7 (Xinhua) -- U.S. stocks were little changed on Tuesday, as traders looked for more clues on when the Federal Reserve may start cutting rates.
The Dow Jones Industrial Average rose 31.99 points, or 0.08 percent, to 38,884.26, marking its longest winning streak since December. The S&P 500 added 6.96 points, or 0.13 percent, to 5,187.7. The Nasdaq Composite Index shed 16.69 points, or 0.10 percent, to 16,332.56.
Eight of the 11 primary S&P 500 sectors ended in green, with materials and utilities leading the gainers by going up 1.17 percent and 1.12 percent, respectively. Meanwhile, consumer discretionary and technology led the laggards by dropping 0.56 percent and 0.53 percent, respectively.
Minneapolis Fed President Neel Kashkari indicated on Tuesday that he expects interest rates to remain unchanged for an extended duration, and he did not dismiss the possibility of a rate hike if inflation hovers around the 3 percent mark. "I think it's much more likely we would just sit here for longer than we expect or the public expects right now until we see what effect our monetary policy is having," Kashkari said.
"This is a market that mimics what the Fed is doing. The market has already digested Powell's comments," said Quincy Krosby, LPL Financial's chief global strategist. Krosby added that she is looking for strong volume on days in which the market rises, which could be a sign of trader conviction after the recent struggles for stocks.
JPMorgan's team, led by Mislav Matejka, noted that while U.S. growth momentum remains robust, it is likely slowing down, which could potentially impact equities. The team observed that the equity market has detached itself from the Fed's influence by assuming a forthcoming acceleration in growth. This rally has led to a "complacent technical picture," with sentiment and positioning indicators remaining elevated despite recent consolidation in the market, as per their analysis.
On the corporate front, Disney announced on Tuesday that a significant segment of its streaming business achieved profitability for the first time. However, the company anticipates weaker results in that segment for the current quarter. This news led to a drop of 9.51 percent in Disney's stock on Tuesday. ■