Wall Street Teeters Amid Fed Rate Cut Anticipations
Wall Street's major indexes declined in volatile trading as investors anticipated a Federal Reserve rate cut to counter weakening labor markets. Despite robust retail sales, future rate cuts seem inevitable. Key swings in sectors, Nvidia's decline, and strategic digital deals highlighted market movements as indexes closed slightly down.
Wall Street's primary stock indexes closed lower during a volatile trading session on Tuesday. This caution arose as investors awaited an expected interest rate cut from the Federal Reserve, anticipated to offset weakening conditions noted in the U.S. labor market, despite stronger than expected retail sales in August.
Investment strategist Ross Mayfield suggested that resilient economic data could embolden hawkish stances within the Federal Reserve's FOMC, potentially affecting Fed Chair Jerome Powell's approach. Meanwhile, the Senate confirmed Stephen Miran to the Fed Board as market participants largely ignored political tensions involving Fed officials, such as Lisa Cook.
The session saw declines led by the S&P 500 utilities and real estate sectors, with the CBOE Volatility Index reaching a weekly high. Particular losses at UnitedHealth and Nvidia further impacted Dow Jones, while separate upward movements by Webtoon and Oracle followed strategic developments with Disney and the TikTok deal respectively.
(With inputs from agencies.)
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