Canada’s main stock index slipped on Tuesday amid broader losses, as bond yields surge to a one-month high, while investors parse the domestic economic data and await U.S. Federal Reserve Chair Jerome Powell’s comments for clues on the future path of monetary policy.

At 09:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 25.43 points, or 0.12%, to 21,850.36 at open

Wall Street’s main indexes opened lower on Tuesday as megacap stocks retreated after a strong session, with additional caution creeping in ahead of jobs opening data.

The Dow Jones Industrial Average fell 61.27 points, or 0.16%, at the open to 39,108.25. The S&P 500 opened lower by 13.25 points, or 0.24%, at 5,461.84, while the Nasdaq Composite dropped 71.26 points, or 0.40%, to 17,808.04 at the opening bell.

Megacap tech stocks Microsoft, Apple and Alphabet slipped between 0.3%-0.5% in early trading, pulling back after gains in the previous session.

Benchmark 10-year Treasury yields slipped slightly on the day but were hovering around multi-week highs, also weighing on rate-sensitive growth stocks.

“Inflation is continuing to remain sticky, interest rates continue to remain high, there seems to be a bit of rotation or at least profit taking going on in some of these names that have done really well,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.

Pavlik also cited investors looking to adjust portfolios ahead of the U.S. presidential election, as the possibility increases of a second term for former President Donald Trump.

AI chip leader Nvidia also dropped 2.1%, with other semiconductor stocks such as Micron Technology, Marvell Technology and Arm Holdings also slipping.

On the data front, the job openings and labor turnover survey, or JOLTS, is due after market open and is expected to show job openings fell to 7.910 million in May from 8.059 million the month prior.

The data is the first in this week’s series of U.S. jobs reports, particularly Friday’s non-farm payrolls, which will be crucial in assessing whether the U.S. labor market remains resilient against the backdrop of decades-high interest rates – a key determinant of economic health.

Investors will parse remarks from Powell in a policy panel before a European Central Bank forum on central banking for further clues on how policymakers have assessed recent data.

As recent data signals a renewed moderation in inflation and some signs of economic weakness, market participants are holding on to their bets around two interest rate cuts by this year-end, starting from September, as per LSEG’s FedWatch data.

With the equity market closed on Thursday on account of U.S. Independence Day, trading volumes are expected to be light throughout the week.

European stocks fell significantly after the 20-nation bloc reported that inflation crept lower — to 2.5% in June — but remained stuck above the level favored by the European Central Bank.

Germany’s DAX lost 1.1% and Britain’s FTSE 100 declined 0.4%.

France’s CAC 40 dropped 1% in early trading. The benchmark jumped as much as 2.8% before settling to a gain of 1.1% on Monday as results from France suggested a far-right political party may not win a decisive majority in the country’s legislative elections.

That raised the possibility of gridlock in the French government, which would prevent a worst-case scenario where a far-right with a clear majority could push policies that would greatly increase the French government’s debt.

This is a big year for elections worldwide, with voters heading to the polls in the United Kingdom later this week and soon elsewhere. In the United States, pollsters are measuring the fallout from last week’s debate between President Joe Biden and former President Donald Trump.

In Asia, Tokyo’s benchmark Nikkei 225 added 1.1% to 40,074.69 as the weaker yen spurred buying of export-oriented shares.

Australia’s S&P/ASX 200 shed 0.4% to 7,718.20 and South Korea’s Kospi dropped 0.8% to 2,780.86 despite data from Statistics Korea showing the country’s consumer inflation slowed to an 11-month low in June.

Hong Kong’s Hang Seng climbed 0.3% to 17,769.14 and the Shanghai Composite index edged up 0.1% to 2,997.01.

Taiwan’s Taiex gained 0.6%, while the SET in Bangkok slipped 0.5%.

The Japanese yen fell to near a fresh 38-year low, reaching 161.67 yen to the dollar early Tuesday. It later gained to 161.62.

The euro cost $1.0723, down from $1.0738.

On Monday, the S&P 500 rose 0.3% and the Dow Jones Industrial Average edged up 0.1%. The Nasdaq composite gained 0.8%.

– Reuters and The Associated Press