Wall Street Closes Lower Amid Tech Sell-Off

U.S. stock indexes retreated as investors braced for the Federal Reserve’s monetary policy decision set for tomorrow.

The three major Wall Street indexes ended Tuesday’s session with losses. U.S. stock averages pulled back as investors positioned themselves ahead of the Fed’s policy announcement.

The Dow Jones Industrial Average, which tracks 30 corporate giants, fell 0.62% to 41,581.31 points. The S&P 500, representing the most valuable companies, dropped 1.07% to 5,614.66 points, while the tech-heavy Nasdaq Composite declined 1.71% to 17,504.12.

New Market Sell-Off

A renewed sell-off in Wall Street’s largest tech companies dragged the S&P 500 lower, following a two-day rebound from oversold technical levels. Better-than-expected economic data failed to sustain buying momentum.

Nvidia (-3.43%) extended its recent declines ahead of a keynote speech by CEO Jensen Huang on the company’s future. Tesla (-5.34%) slid after RBC Capital Markets downgraded its stock rating.

Most sectors closed in the red, with communications (-2.14%) leading the losses. Within the Dow Jones index, the majority of stocks declined. Verizon (+1.33%) led the gainers, while IBM (-2.37%) and Walmart (-2.14%) were among the biggest losers, following Nvidia’s drop.

Investors are focused on tomorrow’s Fed policy decision. While interest rates are expected to remain unchanged, attention will be on Fed Chair Jerome Powell’s remarks and the accompanying statement.

Gold Record

Driven by rising tensions between Israel and Hamas, along with broader geopolitical and economic uncertainties, gold continues to break records, reaching an all-time high on Tuesday as investors seek its “safe-haven” status.

The price of gold surged to a historic peak of $3,038.33 per ounce on Tuesday, surpassing last Friday’s record.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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