Stocks retreated on Tuesday as Wall Street awaited the results of this week’s Federal Reserve policy meeting.
The Dow Jones Industrial Average lost 106.57 points, or 0.31%, to end at 34,517.73. The S&P 500 slid 0.22% to 4,443.95. The Nasdaq Composite slid 0.23% to 13,678.19.
Disney slid more than 3% after announcing plans to nearly double its investment in its cruise and parks business. Deere, often seen as a barometer of future economic activity, fell nearly 3% in the session after investment bank Evercore ISI downgraded the stock due to agricultural production concerns.
Grocery delivery stock Instacart climbed more than 12% after going live on the market.
The central bank’s two-day meeting begins on Tuesday. The Fed is not expected to raise rates when announcing its decision Wednesday, with traders pricing in a 99% probability that the central bank skips a hike, according to CME Group’s FedWatch tool, a gauge of pricing in fed funds futures. Traders are pricing just a 29% chance of a hike in November.
The Fed will also offer economic forecasts on Wednesday. Investors will watch for commentary around the path of inflation and future of monetary policy.
“Now … that we’re face to face with the Fed meeting, markets are just taking a little breather and waiting to see what they say to take their next cue,” said Chris Fasciano, portfolio manager at Commonwealth Financial Network.
“We know that we’re closer to the end of the hiking cycle than the beginning,” said Kevin Gordon, senior investment strategist at Charles Schwab. “How they’re viewing the next year out, or at least turning the corner in 2024, is much more important.”
West Texas Intermediate and Brent crude prices settled lower after hitting highs not seen since November. The move seemed to buoy market sentiment and lift stocks off their lows. Elsewhere, the 10-year U.S. Treasury yield hit a high not seen since November 2007.
Leadership of the striking United Auto Workers union said more members could be called on to withhold labor if progress is not made by a Friday deadline. Stellantis advanced more than 2% in the session, while Ford and General Motors each added more than 1%.
Read the full article here