Stock market today: Wall Street drifts at start of shortened trading day after its big rally

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Stocks are drifting at the start of a shortened trading day Monday as momentum slows on Wall Street following a powerful rally.

The S&P 500 was 0.1% lower in early trading, though it’s still close to its highest level since April 2022. The Dow Jones Industrial Average was down 89 points, or 0.3% at 34,317, as of 9:40 a.m. Eastern time, while the Nasdaq composite was 0.2% higher.

Much of the rest of the market was quieter following a rally where the S&P 500 climbed in six of the last seven weeks to send the index up nearly 16% for the first half of the year. That’s better than Wall Street’s main measure of health has done in 16 of the last 23 full years. One area of the economy that has faltered is manufacturing, and a report later on Monday morning is expected to show another month of contraction for the industry.

The Fed has already hiked rates by a mammoth 5 percentage points from virtually zero early last year in hopes of getting inflation under control. But it’s hinted that it may be close to the end of the increases, which would mean less added pressure on the economy and financial markets. Much of Wall Street expects it to raise rates on July 26.

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