By Shashwat Chauhan and Johann M Cherian
(Reuters) - Wall Street's main indexes were muted on Tuesday, as investors awaited clues on a September interest rate cut from the minutes of the Federal Reserve's latest meeting and a symposium at Jackson Hole later this week.
Markets have been choppy after the S&P 500 and the Nasdaq extended gains to an eighth straight session on Monday, their longest winning streak so far this year, after a recent set of data raised optimism about the economic health and boosted expectations of a rate cut when the Fed meets in September.
Investors have been worried about a recession after a recent report pointed to a rise in unemployment in the world's largest economy, triggering a selloff in stock markets globally earlier this month.
Traders now look forward to any hints from Powell of a rate cut at the upcoming Fed meeting in September when he delivers his speech at the annual economic symposium in Jackson Hole on Friday.
Atlanta Fed chief Raphael Bostic and Fed Vice Chair for Supervision Michael Barr will speak later on Tuesday. Minutes from the Fed's last policy meeting are due on Wednesday.
Odds for the Fed cutting interest rates by 25 basis points (bps) in September stand at 73.5%, compared with a near-even split between a 50 and 25 bps cut seen a week ago, according to the CME FedWatch Tool.
"The market has become more positive over the course of the last week or so, largely driven by the fact that data supports a soft landing scenario," said Art Hogan, chief market strategist at B Riley Wealth in Boston.
"We're just getting back to a place where we're more comfortable with the pace of both economic growth and the decrease in inflation such that we may well welcome a rate cut in September."
At 09:51 a.m. the Dow Jones Industrial Average fell 46.91 points, or 0.11%, to 40,849.62, the S&P 500 gained 5.71 points, or 0.10%, to 5,613.96 and the Nasdaq Composite gained 15.43 points, or 0.09%, to 17,892.20.
Most of the 11 S&P 500 sectors edged higher, led by a 0.7% gain in the healthcare sector that hit a record high helped by Eli Lilly (NYSE:LLY)'s 4% rise.
The drugmaker's shares got a boost after its weight-loss drug cut the risk of developing type 2 diabetes by 94% in pre-diabetic adults who were overweight or obese after three years of weekly injections.
Among others, Palo Alto Networks gained 6.2% after the company forecast fiscal 2025 revenue and profit above estimates.
Tesla (NASDAQ:TSLA) rose 1.1% after the automaker was set to get a reduced tariff on its China-built cars exported to the European Union.
Boeing (NYSE:BA) slipped 2.5% after the airline maker stopped test flights of its 777-9 models as it awaits certification after a component between engine and airplane structure failed to perform during a maintenance check.
Declining issues outnumbered advancers by a 1.23-to-1 ratio on the NYSE, and by a 1.27-to-1 ratio on the Nasdaq.
The S&P 500 posted 28 new 52-week highs and no new lows, while the Nasdaq Composite recorded 47 new highs and 23 new lows.