Stock market today: Dow, S&P 500 drop as rally loses steam ahead of fresh economic data

• US stocks slumped from record highs as traders awaited fresh economic data.
• Markets are bracing for the latest GDP revision, jobless claims, and PCE inflation data in the coming days.

US stocks were mostly lower on Wednesday, ending a record-setting streak of gains as traders looked ahead to coming economic data.

The Dow Jones Industrial Average fell nearly 300 points and the S&P 500 slipped from record highs, ending the day about 0.2% lower. The Nasdaq Composite eked out a small gain.

Bond yields rose, with the 10-year Treasury yield up five basis points to 3.789%.

Traders are looking ahead to a slew of economic releases in the latter part of the week, with the second-quarter's latest GDP revision and weekly jobless claims scheduled for Thursday morning. Personal Consumption Expenditures inflation, the Fed's preferred inflation measure, will be released on Friday.

The data points should give markets more insight into the underlying strength of the US economy, which could impact the path of rate cuts into year-end and in 2025.

"While we are looking for the economy to slow to a more moderate pace into year-end, our base case does not include a recession," Scott Wren, the senior global strategist at Wells Fargo said in a note on Wednesday.

"Even with that view, we are aware of potential risks in coming months as the economy continues to slow (interest rate cuts won't immediately reverse the slowdown), the US elects a new president, and tensions in the Middle East and Ukraine appear to be increasing."

Traders are still expecting steep rate cuts over the course of the next year. Markets have priced in a 59% chance the Fed will issue another jumbo 50 basis point cut in November, according to the CME FedWatch tool, implying a rapid pace of policy easing.

On the earnings front, investors will get an update on the strength of US chipmakers when Micron Technologies reports earnings after the closing bell. The event will be an important bellwether for the AI trade as investors worry about things like return on massive spending and continued demand for AI tools.

Micron, which has consistently beaten earnings and revenue expectations over the past year, rose more than 1% on Wednesday ahead of its results.

Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

• S&P 500: 5,722.25, down 0.19%
• Dow Jones Industrial Average: 41,914.75, down 0.70% (-293.47 points)
• Nasdaq composite: 18,082.21, up 0.04%

Here's what else is going on today:

• Benard Arnault added $6 billion to his net worth in a day this week after China's stimulus sparked a rally in luxury stocks.
• Stocks are mirroring the early days of one of history's biggest bull markets, according to one hedge fund manager.
• There are 3 things that point to a strong stock rally through December, Fundstrat says.

In commodities, bonds, and crypto:

• Oil futures dropped. West Texas Intermediate crude oil dropped 2.57% to $69.72 a barrel. Brent crude, the international benchmark, fell 2.25% to $73.48.
• Gold edged 0.3% higher to $2,684 per ounce.
• The 10-year Treasury yield was up five basis points to 3.789%.
• Bitcoin slumped 0.93% to $63,239.