Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 8, 2025. REUTERS/Jeenah Moon/File Photo

By Purvi Agarwal and Ragini Mathur

(Reuters) - Wall Street's main indexes were largely subdued on Tuesday after closing near record highs in the previous session, while a downwards payrolls revision kept intact bets of interest rate cuts from the Federal Reserve.

The U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said, suggesting that job growth was already stalling before President Donald Trump's aggressive tariffs on imports.

Bets on a 25 basis point cut, that was already priced in, were intact while ones on a jumbo 50 bps reduction remained at about 10%, as per CME's FedWatch tool.

Labor market indicators recently have already cast concerns across the minds of investors and Fed officials alike, with nonfarm payroll data for July and August confirming weakening labor market conditions.

At 10:05 a.m. ET, the Dow Jones Industrial Average rose 31.09 points, or 0.07%, to 45,546.04, the S&P 500 gained 3.98 points, or 0.06%, to 6,499.13 and the Nasdaq Composite gained 5.91 points, or 0.04%, to 21,804.61.

Israel's attack on Hamas leaders in Qatar's capital city Doha boosted already rising oil prices, that lifted the energy sector 1.8%.

UnitedHealth gained 3.2% after the health insurer said it expects enrollment in top-rated Medicare insurance plans to be in line with its expectations.

Inflation reports due this week will also be on investors' radar to gauge the impact of President Donald Trump's tariff policies on the U.S. economy, and whether a case could be made for a bigger rate cut.

"Given the recent softness in the labor market data, even if we were to see elevated inflation data this week, the Fed would cut rates next week," said Chris Kampitsis, managing partner at Barnum Financial Group.

"But that would be a 'one and done' rate cut, especially if inflation data remains elevated in the near-term."

The three main indexes finished Monday's session on a higher note, with the tech-heavy Nasdaq closing at a record, lifted by a rally in chip major Broadcom.

Wall Street has had a broadly positive start to September, a month deemed historically bad for U.S. equities, with the benchmark index losing 1.5% on average since 2000, data compiled by LSEG showed.

In other stocks, Nebius soared about 35% after the AI infrastructure firm signed a $17.4-billion deal with Microsoft. Rival CoreWeave also rose 7%.

U.S.-listed shares of Teck Resources jumped 14% as the miner agreed to merge with London-listed Anglo American on Tuesday.

Class B shares of Fox Corp and News Corp dipped 6.1% and 2.4% respectively. Rupert Murdoch and his children reached an agreement that will give the eldest son Lachlan Murdoch control over the media empire.

Albemarle plunged 11%, the biggest decliner on the S&P 500, on easing supply concerns after Chinese battery giant CATL expected to resume production at a lithium mine.

Declining issues outnumbered advancers by a 1.26-to-1 ratio on the NYSE and by a 1.28-to-1 ratio on the Nasdaq.

The S&P 500 posted 10 new 52-week highs and no new lows, while the Nasdaq Composite recorded 52 new highs and 45 new lows.

(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru; Editing by Pooja Desai and Maju Samuel)