Major U.S. stock indexes traded mostly lower, though the Nasdaq Composite marched deeper into record territory, as investors returned from a three-day holiday weekend.

How are stock-index futures trading?

The Dow Jones Industrial Average

fell 210 points, or 0.6%, to 35,163.

The S&P 500

was down 15 points, or 0.3%, at 4,521.

The Nasdaq Composite

advanced less than 0.1% to 15,371.

The tech-heavy Nasdaq Composite ended at a record on Friday, and gained 1.6% last week. The S&P 500 and the Dow industrials finished the week within touching distances of all-time highs. U.S. markets were closed Monday for Labor Day.

What’s driving the market

Analysts were discussing the implications of the disappointing August payrolls report released Friday by the Labor Department, which showed 235,000 nonfarm jobs created.

Analysts at BCA Research pointed out that while no leisure and hospitality jobs were created last month, wages rose — an indicator that the delta wave of COVID-19 infections is the primary cause for the jobs disappointment, and not a shift in the industry’s hiring needs.

“We expect strong job growth in the months ahead as supply-side labor constraints are removed and infections rates ease. This implies that the Fed will continue to prepare for the normalization of monetary policy, starting with a taper announcement later this year,” they said.

Strategists at Barclays lifted their year-end S&P 500 price target to 4,600 from 4,400. “We do not believe that the start of the taper will lead to a significant market selloff,” the Barclays strategists said.

See: Taper your pessimism — Fed’s actions won’t derail U.S. stocks, Barclays strategists say

Which companies are in focus?

State Street Corp.

announced Tuesday that it had entered an agreement to acquire Brown Brothers Harriman’s Investor Services business for $3.5 billion in cash. The deal includes BBH’s custody, accounting, fund administration, global markets and technology services, and is expected to close by year-end. State Street shares fell 2%.

Shares of Boeing Co.

were down 1.9%. Ryanair Holdings PLC said Monday that its negotiations with the company over an order for the Boeing 737 MAX 10 aircraft had ended as an agreement on pricing couldn’t be reached.

How are other assets faring?

The yield on the 10-year U.S. Treasury note

rose 4.2 basis points to 1.366%. Yields move in the opposite direction of prices.

The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, rose 0.5%.

Oil futures were under pressure, with the U.S. benchmark

down 0.9% at $68.68 a barrel on the New York Mercantile Exchange. Gold futures

were also lower, down 0.9% at $1,816.70 an ounce.

European equities were slightly lower, with the Stoxx Europe 600

down 0.4%, while the FTSE 100

declined 0.3%.

In Asia, the Shanghai Composite

rose 1.5%, while the Hang Seng Index

rose 0.7% and Japan’s Nikkei 225

advanced 0.9%.

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