Stocks ticked lower on Tuesday, ending a winning streak as investors failed to build on the market's recent recovery rally. 

The Dow Jones Industrial Average slid 61.56 points, or 0.15%, to 40,834.97. The S&P 500 slid 0.2% to 5,597.12, while the Nasdaq Composite shed 0.33% to 17,816.94.

Tuesday's declines snapped eight-day winning streaks for the S&P 500 and Nasdaq, the first positive periods of that length for each since late 2023. If the S&P 500 had finished Tuesday up, it would have marked its longest winning streak since 2004. Meanwhile, the Dow notched its first negative day in the last six.

Despite Tuesday's moves, the major averages have bounced back and market volatility has tumbled since the start of the month. The CBOE Volatility Index, or VIX, was last under 16 after topping 65 on Aug. 5. That was also the day that the S&P 500 suffered its worst session since 2022 amid a global market sell-off sparked by a weak July jobs report and an interest rate hike in Japan.

But strong retail sales data and a soft inflation report issued last week have helped soothe investors' fears on the economy. The S&P 500 and Nasdaq are now both higher by more than 1% on the month, underscoring the market's dramatic turnaround.

"There was this sell-off, people reassessed what was going on and we kind of came back to fundamentals of corporate America and the economy," said Tom Hainlin, senior investment strategist at U.S. Bank Wealth Management. "Once we did so, you saw investors come back into the equity market."

This week, investors are readying themselves for the Federal Reserve's annual Jackson Hole Economic Symposium, where Fed Chair Jerome Powell is scheduled to give remarks Friday. Before then, traders will parse minutes from the central bank's July policy meeting due Wednesday.

Wall Street is looking for hints of what to expect at the Fed's next policy meeting. With fed funds futures signaling a certain interest rate cut, according to the CME FedWatch Tool, the only debate is whether central bankers will lower lending rates by a quarter point or a half point in September.

Fed officials want to signal that "they are on top of the curve — not behind it," said Sam Stovall, CFRA Research's chief investment strategist. "But at the same time, they don't want to be too aggressive in removing the pressure before the fire is out."

Cybersecurity company Palo Alto Networks jumped more than 7% after fiscal fourth-quarter results topped analysts' estimates and it set a $500 million stock buyback. Home improvement retailer Lowe's dipped more than 1% after reporting worse-than-expected revenue and lowering its annual profit outlook, noting an expected slowdown in consumer spending.

Beyond earnings, Bank of America slipped around 2.5% as Warren Buffett's conglomerate Berkshire Hathaway continued dumping shares.

Stocks close lower

Stocks closed Tuesday's session lower, ending the longest winning streak of the year for both the S&P 500 and Nasdaq Composite.

The S&P 500 and Nasdaq lost 0.2% and 0.3%, respectively, ending eight straight days of rallies for both. If the S&P 500 had finished the session up, it would have marked the broad index's longest winning period since 2004.

The Dow slipped 0.2%, snapping a five-day win streak.

— Alex Harring

AMD has 'long road ahead' against Nvidia, Oppenheimer says

Advanced Micro Devices' plan to acquire to ZT Systems may help the chipmaker improve its artificial intelligence potential, but it may not be enough to close the gap between Nvidia, according to Oppenheimer.

"We acknowledge AMDs measured approach to filling AI platform 'holes' but see a long road ahead against entrenched AI 800lb gorilla NVDA," wrote analyst Rick Schafer. "We remain sidelined."

AMD said Monday it plans to acquire the New Jersey-based company for $4.9 billion. While the deal should help AMD beef up its AI portfolio — with management expecting the company to sell more GPUs — Schafer posits that it may be "difficult to gauge levels of revenue/EPS accretion."

— Samantha Subin

Expect range bound market until the election, Wells Fargo says

The overhang of the 2024 election will likely leave stocks limited until November, according to Wells Fargo.

"We believe markets will remain range bound until the November elections and that investors should be dynamic when positioning portfolios," Wells Fargo senior global market strategist Sameer Samana wrote Sunday.

Samana recommends slimming down positions in emerging market equities and the consumer discretionary sector if stocks climb once again closer to all-time highs. Conversely, investors should eye small-cap stocks if stocks pull back further, Samana added.

— Brian Evans

Traditional and solar energy stocks fall together

Energy stocks old and new are underperforming Tuesday.

The Energy Select Sector SPDR Fund (XLE), which is focused on fossil fuel firms such as Exxon Mobil, was down 2% in afternoon trading. The Invesco Solar ETF (TAN) was also down 2%, with major holdings such as Sunrun and First Solar seeing even steeper declines.

It is somewhat unusual to see these funds trading together. Entering Tuesday, the XLE had gained about 10.4% year to date, while TAN was down 22%, according to FactSet.

— Jesse Pound

Stocks are modestly lower entering final trading hour

Stocks were slightly down as the final trading hour of Tuesday's session commenced.

The S&P 500 shed about 0.1% shortly after 3 p.m. ET. The Dow and Nasdaq Composite each slipped around 0.2%.

The S&P 500 and Nasdaq are both tracking to snap eight-day win streaks. But if the S&P 500 ends Tuesday in the green, it will mark the longest positive period for the broad index since 2004.

— Alex Harring

Amer pops on revenue beat, full-year earnings raise

Amer Sports jumped more than 10% on Tuesday after the Wilson and Arc'teryx parent exceeded Wall Street's revenue expectations and offered strong full-year guidance.

Revenue came in at $993.8 million for the second quarter, topping the consensus forecast of $947.4 million from analysts polled by LSEG. The Finland-based sports retailer also raised its full-year guidance, overshadowing a softer-than-expected outlook for the current quarter.

Amer went public in February.

— Alex Harring, Brandon Gomez

Either stocks or long bonds are 'mis-priced,' says BTIG's Krinsky

Stocks have bounced back from the flight to safety trade in early August, but long bonds are still holding on to most of their gains. That is probably not a sustainable combination, according to BTIG strategist Jonathan Krinsky.

The iShares 20+ Year Treasury Bond ETF (TLT) was trading at about $98.53 per share on Tuesday, less than 1% below its closing level on Aug. 5. Krinsky said in a note to clients that the performance is "a bit curious here" given that recession fears have eased since then.

"We still believe that we are in a transition period where 'bad news is bad, good news is good', and that should mean a continued inverse relationship between long-bonds and stocks. If so, one of them is likely mis-priced here. So either TLT needs to fall (yields rise), or stocks need to fall here," Krinsky wrote.

— Jesse Pound

Boeing leads Dow losses

Boeing was the largest underperformer in the Dow Jones Industrial Average on Tuesday. The aircraft company dropped 4.6% after it announced it had discovered a failure in the key engine mounting structures of its 777X test fleet.

Intel was the second-biggest decliner in the 30-stock index with losses of around 3%.

— Hakyung Kim

JPMorgan Chase flirts with historic positive streak

JPMorgan Chase could see its longest winning streak on record.

If the bank's shares end Tuesday in the green, it would mark the stock's 11th straight positive day. That would be the first-ever consecutive winning period of that length for JPMorgan Chase shares in available history going to back to 1972.

The stock flickered around its flatline during the session.

— Alex Harring, Nick Wells

Palo Alto Networks, Boeing, Lowe’s among stocks making biggest midday moves on Tuesday

Check out the companies making headlines in midday trading:

• Bank of America — The bank stock slid 2% after a regulatory filing revealed Warren Buffett's Berkshire Hathaway is not done downsizing its stake. The conglomerate sold 13.9 million more shares of the bank for $550.7 million over the past three trading days, bringing its stake to 11.9%.
• XPeng — The U.S.-listed shares of the Chinese electric vehicle maker dropped about 7% after it issued third-quarter revenue guidance that fell short of expectations. The company forecasts revenue in the range of CNY 9.1 billion and CNY 9.8 billion, lower than the FactSet consensus estimate of CNY 10.40 billion.
• Palo Alto Networks — Shares jumped 8% after the cybersecurity company topped Wall Street's fiscal fourth-quarter estimates, putting the stock on track for its best day in nearly a year and making it the S&P 500′s best performer on Tuesday. Palo Alto Networks also gave strong guidance for the fiscal first quarter and year.
• Lowe's — The home improvement stock fell 1% after revenue was softer than expected during the second quarter.

For the full list, read here.

— Pia Singh

Small caps see outsized losses

Small-cap stocks were particularly hard hit on Tuesday.

The Russell 2000 lost about 1% as afternoon trading kicked off. By comparison, the broad S&P 500 slipped just 0.1%.

This cohort of stocks has struggled in August despite hopes for a rebound in an environment with lower interest rates. The Russell 2000 has dropped nearly 5% on the month, while the S&P 500 has climbed around 1.5%.

— Alex Harring

Most S&P 500 sectors trade lower

All but one sector comprising the broad S&P 500 tracked for losses in Tuesday's session, underscoring the breadth behind the leg down.

The S&P 500 is poised to snap an eight-day winning streak. Ten of the 11 sectors within the benchmark index are slated to end in the red as of shortly before 12 p.m. ET.

Energy led the way down with a drop of more than 2.5%. The sector was weighed down by slides of more than 3% in APA, Valero Energy and Phillips 66.

Communication services bucked the downtrend, rising 0.3% in the session. Netflix provided upward momentum with a 1.5% advance.

— Alex Harring

Palo Alto Networks heads for best day in nearly a year

Shares of Palo Alto Networks rallied about 8% during midday trading, putting the cybersecurity provider on pace for its best day in nearly a year.

If shares close at this level, the company will record its best day since Aug. 21, 2023, when shares surged nearly 15%. The stock was the best performer in the S&P 500 during Tuesday's session.

The rally in Palo Alto Networks came on the heels of a stronger-than-expected fiscal fourth quarter. The company also offered robust guidance.

— Samantha Subin

Treasury yields are range bound, says JPMorgan

Ahead of the Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole symposium on Friday, as well as the central bank's September meeting, JPMorgan co-head of U.S. interest rate strategy Jay Barry believes Treasury yields are range bound.

"In order for the yields to move lower, you need to think we're in a recession," Barry told CNBC's "Squawk on the Street" on Tuesday. "But I kind of think we're range bound here, because we know that the Fed's about to embark on a cutting path. … Fed policy is pretty much more restrictive than it's been at any point in the last 30 years."

The 10-year Treasury was last trading lower more than 4 basis points at 3.824%.

— Hakyung Kim

Market comeback has defensive qualities, says Wolfe Research

Although the major averages have managed to turn positive for the month after the large sell-off, the market bounce back "certainly had a defensive tilt to it," says Wolfe Research.

Defensive sector health care is the best-performing sector in August, followed by utilities and consumer staples. Health care and consumer staples are also the only sectors trading at new 52-week highs, managing director Rob Ginsberg noted.

"Quite the strength being exhibited from these defensive groups," Ginsberg wrote in a Tuesday note.

"Within Health Care, Managed Care has been the leading group over the past month, followed by Pharma and Biotech. Life Sciences & Tools have lagged within the sector, but are home to several compelling catch up opportunities," he added.

— Hakyung Kim

Warren Buffett is still dumping Bank of America shares

Warren Buffett once again offloaded Bank of America shares as his selling spree continued.

His conglomerate Berkshire Hathaway sold 13.9 million more shares of the bank for $550.7 million over the past three trading days, according to a regulatory filing.

The latest sale pushed Berkshire's stake in Bank of America to 11.9%. As long as the stake is 10% and above, Berkshire has to disclose its transactions within two business days.

Buffett famously bought $5 billion worth of BofA's preferred stock and warrants in 2011 in the aftermath of the financial crisis, shoring up confidence in the embattled lender struggling with losses tied to subprime mortgages. He converted those warrants in 2017.

Berkshire had a 12-day selling streak of Bank of America shares in mid-July.

— Yun Li

Investors shrugging off weak retail guidance

Home Depot, Walmart, Tapestry and Estée Lauder are among the retail names that have given weak outlooks over the past week. Yet, their stocks traded flat to up despite those rather poor forecasts.

That distinct trend continues this morning with both Lowe's and Amer Sports.

Lowe's is still being hurt by weak big-ticket consumer spending. But after the company stood by its full-year forecast three months ago, it cut its guidance this time around. The reduction comes after two solid earnings beats since the home improvement retailer gave its initial 2024 outlook back in February. The newly slashed forecast indicates a pretty soft second half ahead. This morning's cut is notable, too, since executives also stood by the original February forecast at a retail conference in late June, when they were still optimistic that easier second-half comparisons would work in their favor.

Shares of Wilson Sporting Goods and Arc'teryx parent Amer Sports are soaring after posting a big unexpected second-quarter profit (5 cents vs. a loss of 6 cents expected) on strong sales figures. The big beat is overshadowing the disappointing third-quarter earnings per share and revenue forecasts (8 cents to 10 cents in profit vs. 14 cents estimated on 12% to 13% revenue growth vs. 13% estimated).

— Robert Hum

Stocks open little changed

Stocks opened Tuesday's session little changed.

The Dow ticked down just 0.2% shortly after 9:30 a.m. ET. The S&P 500 and Nasdaq Composite, which are both coming off eight-day winning streaks, traded marginally above flat.

— Alex Harring

Rate-cut bets drive gold prices to record high on Tuesday

Gold prices hit a record high on Tuesday, fueled by a weaker U.S. dollar and buying from Western investors ahead of comments from Federal Reserve Chair Jerome Powell due Friday.

• Spot gold rose 0.8% to $2,524.88 per ounce, beating a previous record hit on Friday. 
• Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, also jumped to their highest in seven months at 859 tons on Monday.
• Gold is up 22% this year, heading for the best year since 2020.

"Gold is effectively trading in line with expected cross-asset correlations, albeit being driven more by the FX side rather than rates at the moment," Marcus Garvey, head of commodities strategy at Macquarie, told Reuters. "From a flow perspective, it's quite notable that it's coming much more from Western investor buying than anything else."

— Pia Singh, Reuters

S&P 500 could see longest winning streak since 2004

The S&P 500 has successfully advanced for the last eight trading days, a first since November 2023.

Now, the question is if the broad index can notch a ninth consecutive winning session on Tuesday. That would mark its longest positive streak since 2004, according to Deutsche Bank data.

"These aren't the sort of moves we see every day, and it feels a long way from the fears of two weeks ago," Henry Allen, the firm's macro strategist, wrote to clients in a Tuesday note.

For some asset classes, Allen said it already looks like the original downturn seen at the start of the month "never happened."

— Alex Harring

Stocks making premarket moves

Here are some of the names making moves before the bell:

• Eli Lilly — The pharma stock rose 2.3% after a late-stage trial found the company's weight loss drug tirzepatide, the active ingredient in Zepbound and Mounjaro, reduced the risk of obese or overweight adults developing Type 2 diabetes by 94%.
• Paramount Global — Shares dipped 3% after reports that media executive Edgar Bronfman Jr. submitted a rival bid to acquire National Amusements, the company that owns a controlling stake in Paramount Global. Last month, Skydance Media and its partners reached a deal to buy Paramount.
• Hawaiian Holdings, Alaska Air — Hawaiian's stock jumped 11.2% and Alaska Airlines' stock gained 1.5% after the merger of the two airlines cleared the U.S. Department of Justice. The companies now need to secure approval from the U.S. Department of Transportation before the $1.9 billion deal closes.

To see more premarket movers, read the full story here.

— Michelle Fox

Lowe's posts mixed quarterly earnings, cuts full-year guidance

Lowe's shares rose modestly before the bell after posting a mixed earnings report and warning of weakness in the full year.

The home improvement retailer earned $4.10 per share in fiscal second quarter, topping the consensus forecast of $3.97 from analysts polled by LSEG. But the company also posted $23.59 billion in revenue, under the $23.91 billion figure anticipated by Wall Street.

Lowe's also slashed its full-year outlook, citing soft demand for do-it-yourself materials.

— Alex Harring, Melissa Repko

Financials, health care and consumer staples sectors see record closes

In a sign of a broadening rally, three sectors of the S&P 500 posted record closes on Monday: financials, health care and consumer staples.

Big winners among financials include Capital One and Synchrony, both of which jumped more than 2%. Moderna and Dexcom, which advanced 3.6% and 4%, respectively, lifted the health-care sector. Finally, potato products producer Lamb Weston gained more than 3% to boost the consumer staples sector, while Clorox popped 2.6%.

All 11 of the sectors of the broad market index ended the session higher, led by information technology, which advanced 1.44%.

— Darla Mercado, Chris Hayes

Palo Alto Networks rises after earnings report

Shares of Palo Alto Networks advanced 2.7% Monday night after the company's forward guidance topped estimates.

The cybersecurity company guided fiscal first-quarter earnings per share in a range of $1.47 to $1.49, beating estimates of $1.43 per share, according to LSEG. Revenue guidance in a range from $2.1 billion to $2.13 billion was also higher than the $2.1 billion forecast by analysts.

Palo Alto Networks beat on both top and bottom lines in the fiscal fourth quarter. Management also announced a $500 million boost to its buyback program.

— Hakyung Kim

Stock futures are flat Monday

U.S. stock futures traded near the flatline Monday night.

S&P 500 futures were marginally higher. Nasdaq 100 futures inched up 0.1%, while futures tied to the Dow Jones Industrial Average were unchanged.

— Hakyung Kim