Dow Declines, S&P 500 and Nasdaq Rise On Tuesday, U.S. stock markets closed with mixed results as investors eagerly awaited the Federal Reserve’s upcoming decision on interest rates. The Dow Jones Industrial Average dipped 0.04% to close at 41,606.18, while the S&P 500 posted a modest gain of 0.03%, ending at 5,634.58. Meanwhile, the Nasdaq Composite rose 0.2% to 17,628.06, supported by strong performances in tech stocks.
Fed Rate Cut Anticipation The market’s attention is focused on the Federal Reserve’s two-day meeting, which concludes on Wednesday. While a 25-basis-point rate cut is widely expected, some uncertainty persists about the potential for a larger 50-basis-point cut in response to slowing economic conditions.
Retail Sales and Industrial Production Economic data released on Tuesday showed that U.S. retail sales edged up 0.1% in August, slightly surpassing expectations, but below the revised 1.1% increase in July. On the other hand, industrial production outperformed, rising 0.8% after a previous decline, signaling a rebound in manufacturing activity.
Tech Stocks Surge, Intel Leads Gains Tech stocks were among the day’s top performers, with Intel climbing 2.68% after announcing the spinoff of its foundry business and securing $3 billion in federal funding for chip production. Microsoft also rose 0.88% after unveiling a $60 billion stock buyback plan and increasing its dividend by 11%.
Outlook: Fed Decision on the Horizon As markets await the Fed’s interest rate decision, the broader outlook remains uncertain. The outcome will likely have a significant impact on investor sentiment, particularly regarding the potential for further economic stimulus and its effect on sectors like technology and manufacturing.
