By Johann M Cherian and Purvi Agarwal

(Reuters) – Wall Street’s main indexes were mixed on Monday as investors paused after a rally in the previous week and exercised caution ahead of numerous job reports and comments from Federal Reserve policymakers, including Chair Jerome Powell.

At 9:47 a.m., the Dow Jones Industrial Average fell 226.69 points, or 0.54%, to 42,086.31. The S&P 500 lost 4.52 points, or 0.08%, to 5,733.65, while the Nasdaq Composite gained 44.41 points, or 0.25%, to 18,164.00.

Eight of the 11 S&P 500 sectors were lower. Materials was at the bottom with a 0.8% decline after logging its best week since early December on Friday.

The Dow closed at a record high on Friday, and the S&P 500 hovered near its own milestone. Both indexes are set for their fifth straight month of gains, defying the historical trend where September is typically weak for equities.

The three main indexes are set for a quarterly rise after the Fed initiated its policy easing nearly two weeks ago, fueling gains on Wall Street.

Recent data has supported moderating price pressures and a resilient economy, granting the Fed enough room to support the labor market and avoid a recession by further reducing borrowing costs.

Economists warn that a mistake in setting interest rates during the Fed’s inflation battle could be risky for the economy over the next year as markets await comments from Chair Powell at a conference on Monday at 1:55 p.m. ET.

August’s job openings report and September’s critical payroll figures, along with final business activity estimates, are on the radar this week and could provide clues about the economic outlook and potential rate cuts.

“If we start to see a greater-than-expected slowdown in the jobs market, the forecast for the November Fed meeting could indicate a greater likelihood of a 50 bps cut,” said Sam Stovall, chief investment strategist at CFRA Research.

Traders are now pricing in 62.9% chances of a 25 bps reduction, according to the CME Group’s FedWatch Tool. Meanwhile, the chances for a bigger 50 basis points cut stand at 37.1%, down from 53% last week.

CVS Health rose 3.3% after it was reported that hedge fund Glenview Capital Management will meet with top executives at the struggling healthcare company.

Automakers Ford and General Motors saw declines of 2.2% and 3%, respectively, after European peer Stellantis NV slashed its annual forecasts.

U.S.-listed shares of Alibaba rose 3.5%, Li Auto jumped 6%, and PDD climbed 3.3% after China’s central bank indicated it would instruct banks to lower mortgage rates for existing home loans as part of its latest stimulus.

Freeport-McMoRan dipped 2.2% following a rating downgrade from Scotiabank, weighing on the materials sector.

Markets also closely monitored a worker union’s port strike on the East Coast and the Gulf of Mexico that could cause delays and disrupt supply chains.

Declining issues outnumbered advancers by a 1.45-to-1 ratio on the NYSE and by a 1.23-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and two new lows, while the Nasdaq Composite recorded 36 new highs and 29 new lows.