Investors on Edge Before Fed Decision, Stocks Take Header
September 19,2023 10:32 am EST
Stocks retreated on Tuesday as Wall Street awaited the results of this week's Federal Reserve policy meeting.
The Dow Jones Industrials dropped 171.04 points to 34,453.26.
The S&P 500 index sank 19.8 points to 4,433.73.
The NASDAQ index withered 80.25 points to 13,629.99.
Deere, often seen as a barometer of future economic activity, fell more than 2% in the session. The drop came after Evercore ISI downgraded the stock to in-line from outperform due to agricultural production cuts.
Leadership of striking United Auto Workers said more workers could be called on to withhold labor if progress is not made by a Friday deadline. Stellantis climbed about 2% in Tuesday's session, while General Motors moved 0.8% forward, and Ford advanced around 0.1%.
The central bank's two-day meeting begins on Tuesday. The Fed is not expected to raise rates when announcing its decision Wednesday, with traders pricing in a 99% probability that the central bank skips a hike. Traders are putting just a 29% chance of a hike in November.
The Fed will also offer economic forecasts on Wednesday. Investors will watch for commentary around the path of inflation and future path of interest rates.
Prices for the 10-year Treasury sagged, raising yields to 4.34% from Monday's 4.31%. Treasury prices and yields move in opposite directions.
Oil prices strengthened $1.35 to $92.83 U.S. a barrel.
Gold prices eased 50 cents to $1,952.90 U.S. an ounce.