U.S. stocks retreated at the start of trade Monday as investors scaled back expectations for interest-rate cuts following last week’s strong June jobs report.

What are major indexes doing?

The Dow Jones Industrial Average

DJIA, -0.48%

fell 100 points, or 0.4%, at 26,818, while the S&P 500 index

SPX, -0.54%

 shed 13 points, or 0.4%, to 2,977. The Nasdaq Composite Index

COMP, -0.88%

declined 76 points, or 0.8%, to 8,094.

Need to Know: Weaker growth will offset a Fed rate cut — so sell stocks, warns Morgan Stanley

Stocks scored weekly gains in last week’s holiday-shortened action, with all three major indexes notching record closes on Wednesday. But stocks pulled back Friday to end slightly lower after a bigger-than-expected jump in June nonfarm payrolls saw traders scale back expectations for rate reductions.

The Dow ended 43.88 points lower on Friday, down 0.2%, at 26,922.12, while the S&P 500 pulled back 0.2% to end at 2,990.41. The Nasdaq gave up 8.44 points, or 0.1%, to close at 8,161.79.

What’s driving the market?

Traders continue to look for the Federal Reserve to cut rates when policy makers meet at the end of the month, but fed-funds futures show investors cut bets for a 50 basis point reduction since Friday morning. Analysts said testimony before Congress by Fed Chairman Jerome Powell will likely be a big driver for stocks this week.

“Our economists continue to expect a rate cut by the U.S. Federal Reserve at the end of July, but all eyes will now be on Fed Chairman Jerome Powell on Wednesday,” said Patrik Lang, head of equity research at Julius Baer, in a note.

“With regard to equities, any macroeconomic data that eases concerns about an impending slowdown, in combination with a Fed that is not tightening and a steepening yield curve, are, in our view, providing a bullish backdrop for equities in general, especially for cyclicals,” he said.

Read: A strong economy and Fed rate cuts: The stock market wants to ‘have its cake and eat it, too’

European equities

SXXP, -0.09%

were trading slightly lower as shares of German banking giant Deutsche

DBK, -6.42%

DBK, -5.99%

 fell 1.4% in Frankfurt, a day after announcing a sweeping restructuring that will see it shed 18,000 jobs by 2022 and drop its stock sales and trading unit as it exits investment banking activities.

Which stocks are in focus?

Shares of Dow component Boeing Co.

BA, -1.24%

fell 1.6% Monday, after Saudi Arabian airliner canceled a deal valued at more than $5.5 billion, deciding to give its business to rival Aribus SE. The loss comes amid questions regarding the safety of the 737 Max, after two fatal crashes since October.

Fellow Dow constituent, Apple Inc.

AAPL, -2.39%

shares tumbled 1.9% after Rosenblatt Securities analyst Jun Zhang downgraded the stock to sell from neutral.

Shares of Google-parent Alphabet Inc.

GOOG, -1.50%

GOOGL, -1.52%

 could be in focus Monday, after the New York Post reported that Alphabet director Alan Mulally was in discussions with satellite-TV provider Dish Network Corp.

DISH, +1.07%

to create a fourth U.S. telecom player, if a planned merger between T-Mobile US Inc.

TMUS, -0.28%

 and Sprint Corp.

S, -0.99%

is consummated. The network would be formed by acquiring assets from T-Mobile, which it may be forced to sell if the Justice Department approves the merger. Google denied the report.

Symantec Corp.

SYMC, +3.56%

stock rose 5.6%, after Bloomberg reported that former Chief Executive Officer Greg Clark has teamed up with private-equity firms Advent International and Permira Holdings to attempt to make a counter offer to Broadcom’s reported takeover attempt. Broadcom Inc.

AVGO, -2.53%

is still seen as the favorite in the race for Symantec’s assets.

Canada-based cannabis firm CannTrust Holdings Inc.

CTST, -17.84%

said that its greenhouse facility in Pelham, Ontario was deemed “non-compliant” by regulators. U.S.-listed shares fell more than 18% Monday morning.

How are other markets trading?

The yield on the 10-year U.S. Treasury note fell roughly two basis points to 2.022%.

In Asia, stocks fell sharply Monday, with China’s Shanghai Composite Index

SHCOMP, -2.58%

Shenzhen Composite index

399106, -2.90%

and CSI 300

000300, -2.86%

all retreating more than 2.3%.

In commodities markets, the price of oil edged lower, while gold prices

GCQ19, +0.13%

rose 0.5%. The U.S. dollar

DXY, +0.07%

meanwhile, edged slightly higher.

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2019-07-08