Traders work on the floor of the New York Stock Exchange (NYSE) on July 26, 2023.
Brendan McDermidt | Reuters
Stocks retreated on Tuesday as Wall Street watched for updates from the Federal Reserve’s policy meeting.
The Dow Jones industrial average lost 58 points, or 0.2%. The S&P 500 fell 0.3%, while the Nasdaq composite fell 0.4%.
Major averages are coming off a mostly flat session on Monday S&P 500 increased by 0.07%. The Nasdaq Composite Gained 0.01% in 30-shares Dow Up 0.02% or 6.06 points.
The central bank’s two-day meeting begins on Tuesday. The central bank is not expected to raise rates when it announces its decision on Wednesday, with traders expecting the central bank to avoid a hike with a 99% probability. CME Group’s FedWatch tool, Pricing Fed Fund Futures. Traders see only a 29% chance of a hike in November.
The central bank will also provide market forecasts on Wednesday. Investors will look for commentary around the path of inflation and the future path of interest rates.
“The overall market is feeling a little bit tighter than we’ve seen in the first nine months of the year,” Ankur Crawford, Alger’s portfolio manager, said on CNBC’s “Closing Bell” on Monday. “China, it has to work and Covid comes out … the US consumer is still showing signs of a little bit of stress. So we’re going to markets that are not boring and that’s basically falling into technology.”
