In a shift from recent gains, US stocks experienced a downturn on Tuesday, marking the end of a five-session winning streak for the S&P 500. The decline was prompted by the release of the Federal Reserve’s minutes from its last meeting, revealing a continued consideration of a restrictive policy outlook.
The minutes hinted at a hawkish-leaning stance, dashing hopes for an imminent pivot to rate cuts. While no further rate hikes are anticipated, the majority expects rates to remain within the current 5.25%-5.50% range.
LPL Financial’s Jeffrey Roach commented on the situation, stating that investors should anticipate a continued hawkish tone from Fed Chair Jerome Powell and other committee members. However, Roach emphasized that this does not necessarily imply further rate hikes. The Fed is expected to maintain a vigilant stance on inflation, patiently awaiting the full effects of previous rate adjustments.
Post-market, investors eagerly awaited Nvidia’s earnings release. As one of the standout tech stocks of the year, Nvidia faced high market expectations for significant increases in profits and sales.
Here’s a snapshot of US indexes at the 4:00 p.m. ET closing bell on Tuesday:
- S&P 500: 4,538.19, down 0.20%
- Dow Jones Industrial Average: 35,088.29, down 0.18% (62.75 points)
- Nasdaq Composite: 14,199.98, down 0.59%
Key Highlights from the Day:
- Binance agrees to pay a $4.3 billion fine as CEO Changpeng Zhao pleads guilty to charges and announces stepping down.
- A new ETF provides investors with an opportunity to capitalize on the Ozempic weight-loss trend.
- Moscow’s high interest rates contribute to the Russian ruble becoming the world’s top-performing currency since early October.
- An indicator suggests the possibility of the S&P rally continuing into year-end.
- Increasing demand for nuclear power drives uranium prices to a 15-year high.
- Treasury bonds recover from 2023 losses following a historic collapse amid changing Fed sentiment.
Commodities, Bonds, and Crypto Update:
- West Texas Intermediate crude oil inches up 0.03% to $77.87 per barrel. Brent crude, the international benchmark, rises 0.23% to $82.50.
- Gold remains essentially flat at $1,999.55 per ounce.
- The yield on the 10-year Treasury sheds 1 basis point to 4.412%.
- Bitcoin slides 1.2% to $37,018.
