US stocks closed slightly higher on Tuesday after fluctuating between negative and positive territory throughout the day. The S&P 500 and Nasdaq rose by about 0.1%, while the Dow Jones Industrial Average saw a 0.4% increase. Investors adjusted their rate-cut expectations following weaker-than-expected economic data, causing uncertainty over the future path of interest rates. Federal Reserve officials have cautioned against expecting a pivot soon, waiting for inflation to cool sufficiently before making any decisions. The labor market showed signs of rebalancing with job openings falling to their lowest level since February 2021, leading up to the crucial May jobs report later in the week. Traders have increased their expectations for rate cuts, with nearly two-thirds anticipating at least one cut by September. The volatile GameStop rally also calmed down on Tuesday after a previous surge, with shares falling by about 5%.