Markets Remain Steady Ahead of Anticipated Fed Interest Rate Decision

The S&P 500 and Nasdaq managed to stabilize despite early losses on Tuesday as the market awaited the Federal Reserve's anticipated interest rate cut. While declines in healthcare stocks weighed on the Dow, expectations of a 25 basis-point cut to address U.S. labor market issues remained dominant.

Ross Mayfield from Baird Private Wealth Management stated that resilient economic data might strengthen hawkish sentiments within the Federal Open Market Committee, potentially influencing Fed Chair Jerome Powell's policy stance. Key sectors like utilities and real estate saw declines, further contributing to market anxieties.

Gains in energy and consumer discretionary sectors provided some relief, with Tesla bolstering the latter. Meanwhile, political and economic developments, including the confirmation of a Fed Board appointee, kept investors attentive to potential shifts. Despite a traditionally challenging month, main indexes remain positive in September.

(With inputs from agencies.)