Wall Street Pulls Back Ahead of Fed Announcement
Wall Street’s main indices fell on Tuesday, with the Dow Jones Industrial Average extending its losing streak to nine consecutive sessions.
Investors are eagerly awaiting the Federal Reserve’s final rate decision of the year, set to be announced tomorrow.
The Dow Jones Industrial Average [[DJIA]], comprising 30 blue-chip companies, dropped 0.61% to close at 43,449.90 points. The S&P 500, representing 500 major companies, declined 0.39% to 6,050.61 points, while the Nasdaq Composite slipped 0.32% to end at 20,109.06 points.
The Federal Reserve is expected to announce its final monetary policy decision of the year tomorrow. According to CME’s FedWatch tool, there is a 97.1% probability that the Fed will implement a 25-basis-point adjustment, bringing the rate to a range of 4.25%-4.5%.
However, market attention is focused on the Fed’s guidance following the announcement. Recent economic data and comments from Fed officials suggest a slowdown in the pace of rate cuts next year.
On the economic front, U.S. retail sales showed solid growth in November, driven by strong automobile purchases. November’s retail sales rose 0.7%, following an upwardly revised 0.5% increase in October.
Among individual stocks, semiconductor giant Nvidia saw its shares fall 1.22%, continuing their decline after entering correction territory on Monday. The company’s stock is now down 12% from its all-time high, pressured by recent market trends affecting the AI chip leader.
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