Stocks Stir as Fed Meeting Begins and Retail Surprises

The S&P 500 and Nasdaq appeared set for gains on Tuesday as market participants awaited potential interest rate cuts from the Federal Reserve. The Fed's two-day meeting, commencing on Tuesday, carries strong expectations of a 25 basis point reduction in light of recent labor market struggles and economic data.

U.S. retail sales rose beyond forecasts in August, according to the Commerce Department, but ongoing labor issues and rising tariffs could slow momentum. Investors remain confident in monetary easing of 67 basis points by 2025, despite the Senate's confirmation of Stephen Miran to the Fed Board and recent judicial decisions on Fed leadership.

Oracle shares climbed following a TikTok deal report, while Webtoon Entertainment's partnership with Disney boosted its stock. Meanwhile, Dave & Buster's faced challenges with a revenue miss, and Chipotle increased its share repurchase effort. Analysts observed notable market trends even as investors adopted a cautious stance amid potential policy changes.

(With inputs from agencies.)