Wall Street bleeding out on dialled down Fed rate cut hopes

• DJIA, lost 115.98 points, or 0.4%, to close at 26,806.14.
• S&P 500 index dropped  14.47 points, or 0.5%, to finish at 2,975.95.
• Nasdaq traded as many as 83.4 points lower, a loss of 1%.

U.S. stocks were anchored on Monday following last week's Nonfarm Payrolls and despite the recent US-China trade truce, investors remain wary. Moreover, investors fear that there will not be as many rate cuts fro the Fed this year as fiscal stimulus dries up. This week's FOMC minutes and Powell's testimony will be crucial in that regard.

Subsequently, the Dow Jones Industrial Average, DJIA, lost 115.98 points, or 0.4%, to close at 26,806.14, while the S&P 500 index dropped  14.47 points, or 0.5%, to finish at 2,975.95. The Nasdaq Composite Index also fell and lost 63.41 points, or 0.8%, to end at 8,098.38. At the worst stages of the day for the indexes, the DJIA had lost 177.25 points, or roughly 0.7%, the S&P retreated 20.29 points, also 0.7%, while the Nasdaq traded as many as 83.4 points lower, a loss of 1%.

DJIA levels

Price action remains in consolidation, unlikely to break out to the upside until investors get a sense of where the Fed' stands on the dots. This week's FOMC minutes and Powell's testimony will be key in that regard. Despite Monday's lower close, price action, in general, is still supportive of a northerly trajectory considering the bullish pin-bar that proceeded a fresh high last week. Bears have the 24800 is the recent swing bottoms in sight, while on the upside, the 127.2% Fibo extension targets the 28500s on the upside.