Traders work on the floor of the New York Stock Exchange during morning trading on August 26, 2025 in New York City.
Michael M. Santiago | Getty Images
The S&P 500 was relatively unchanged on Tuesday as investors tried to grasp the state of the U.S. economy.
The broad market index, along with the tech-heavy Nasdaq Composite, rose 0.2%. The Dow Jones Industrial Average, however, climbed 195 points, or 0.4%.
Concerns among investors that the economy may not be holding up as well as previously thought were exacerbated Tuesday after the Bureau of Labor Statistics updated its jobs figures for the 12 months through March, lowering the total payroll gains during that period by a whopping 911,000. Not only were the revisions on the high end of what Wall Street anticipated but they were also the largest on record going back to 2002.
 “I think the economy is weakening,” JPMorgan Chase CEO Jamie Dimon told CNBC on the heels of the report. “Whether it’s on the way to recession or just weakening, I don’t know.”
While the data had minimal impact on stocks Tuesday because they were regarding figures from six months ago, the report might reinforce calls for the Federal Reserve to be more aggressive with rate cuts this year.
“The jobs picture keeps deteriorating and while that should make it easier for the Fed to cut rates this fall, it could also throw some cold water on the recent rally,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Wall Street is coming off a winning session, with key chipmakers such as Broadcom and Nvidia helping carry the Nasdaq to all-time highs. Broadcom shares reversed course during Tuesday’s session after seeing strong gains in the prior two trading days. The stock was last down 2%, though its one-week advance is still at 13%.
Investors are now bracing two key inflation reports that could determine what Fed policymakers will do at their meeting next week. Last week, a surprisingly weak jobs report added to hopes the path for interest rates is lower, but any surprising strength in the inflation readings could throw a wrench in that outlook. The August producer price index report is due out Wednesday morning, while the consumer price index is set to release on Thursday.
“If the CPI shows a worsening trend of higher inflation on Thursday then the market will begin worrying about stagflation,” Zaccarelli said. “The bull market has been extremely resilient this year, but we could be approaching an inflection point where it is tested again.”