Investors cautious as market shows signs of slowdown

As Wall Street gears up for a shortened trading session ahead of the Independence Day holiday, investors are closely monitoring key economic indicators and reports. The Federal Reserve's June policy meeting minutes are eagerly awaited, along with the release of crucial job data.

Market sentiment was slightly dampened as stocks were set to open lower, with attention on the ADP Employment report revealing a slower growth in U.S. private payrolls for June. Additionally, weekly jobless claims exceeded expectations, hinting at a potential slowdown in the labor market.

Despite these concerns, market participants are maintaining their expectations of a rate cut by the Fed in September, with the possibility of further cuts by year-end. Notable data points to watch include factory orders, services PMIs, and the Fed's meeting minutes.

On Tuesday, the Nasdaq and S&P 500 hit record highs, driven by strong performances from companies like Tesla. However, the market's growth has been largely fueled by tech-related stocks, highlighting a lack of broad-based market strength.

As trading kicks off, major indices are showing a slight decline, with notable premarket movers like Paramount Global and First Foundation experiencing significant price movements.

As investors navigate through a holiday-shortened trading week, the focus remains on economic data and the Fed's policy outlook. While market highs have been reached, concerns about the labor market and broader market strength persist. Stay tuned for further updates as the week progresses.