Global markets felt a ripple on Tuesday as US stocks slid ahead of a highly anticipated Federal Reserve decision. By the closing bell, the Dow Jones Industrial Average dipped 204.57 points (-0.46%) to 44,632.99, while the S&P 500 dropped 18.91 points (-0.30%) to 6,370.86. The tech-heavy Nasdaq Composite fell 80.29 points (-0.38%) to 21,098.29.
Sectors told the story of cautious investors: seven of the 11 major S&P 500 sectors closed in negative territory, led by industrials and consumer discretionary stocks. In contrast, real estate (up 1.70%) and utilities (up 1.17%) bucked the trend as safe-haven plays.
On the data front, the US Bureau of Labor Statistics reported job openings steady at 7.4 million in June, hinting at a stable labor market. Hiring figures also showed little change, suggesting employers are treading carefully.
Corporate earnings added fuel to the market mood. Aerospace giant Boeing soared past expectations, while results from Spotify, Merck and UnitedHealth fell short of forecasts. UPS shares plunged 10.57% after missing earnings estimates and withholding forward guidance, but Corning was a bright spot – jumping 11.86% on robust quarterly results.
In the tech arena, mega-caps wavered. Tesla and Apple each slipped over 1%, with Nvidia and Amazon also trading lower. Search giant Alphabet and chipmaker Broadcom bucked the downtrend, both climbing more than 1%. All eyes now turn to Microsoft and Meta, set to report after Wednesday's close, followed by Apple and Amazon on Thursday.
As the Fed kicks off its two-day policy meeting, most analysts expect rates to hold at 4.25% – 4.5%. Investors will be watching for any hints on the central bank's next move: will it stay pat, or signal a shift in the battle against inflation?
With corporate results and economic data in hand, markets are bracing for Wednesday's Fed verdict: today's market jitters might be a preview of the high-stakes decision that could set the tone for months to come.
Reference(s):
cgtn.com
