FOMC Meeting Commences US Stock Market Shows Negative Response with Indexes Declining Across the Board
On Tuesday, as investors prepared for the important announcement ahead of the Federal Open Market Committee (FOMC) two-day policy meeting, the stock market took a hit. Major indexes such as the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite Index all fell as expected.
Stocks across the board declined, with the Dow Jones Industrial Average dropping 219 points, a 0.6% decrease, significantly retreating. Similarly, the S&P 500 index fell 0.3%, while the Nasdaq Composite Index slipped 0.2%. Major stocks like JPMorgan Chase, Pfizer, and American Express all dropped by over 1%. Tech giants Nvidia and Microsoft also saw slight declines, further dragging down the overall market.
Investors’ focus is on the Federal Reserve’s two-day policy meeting that began on Tuesday. The meeting will conclude on Wednesday with a crucial interest rate decision, followed by a press conference by Fed Chair Powell. Despite high expectations for the policy announcement, market sentiment indicates that borrowing rates may remain unchanged. According to CME’s FedWatch tool, the likelihood of a rate cut this week is almost zero.
Before the Fed makes a decision, investors are closely watching other key economic indicators. On Tuesday, small business data will be released, providing insights into the current economic conditions. Additionally, the May Consumer Price Index (CPI) will be released on Wednesday morning in the United States.
Bitcoin fell by 3.65%, Ethereum by over 4%, BNB returned to 600, and SOL hesitated around 150.
FED
FOMC
Federal Reserve
rate cut
For more reading:
Employment report dashes rate cut expectations! US stocks still near historic highs, crypto market plunges
Bank of Canada takes the first step in rate cuts, Nvidia, TSMC stock prices hit new highs
