US Stock Market Closes Lower Ahead of Federal Reserve Meeting

US Stock Market Closes Lower Ahead of Federal Reserve Meeting

New York (Reuters) – The US stock markets closed lower amid a risk-off sentiment ahead of the US Federal Open Market Committee (FOMC) meeting held by the Federal Reserve (Fed) until the 20th.

The Federal Reserve is set to announce the FOMC results on the afternoon of the 20th, with expectations that the policy rate will remain unchanged. Market attention will be focused on the outlook for the policy rate and Chairman Powell’s press conference.

According to Michael Green, chief strategist at Simplify Asset Management, although rates are expected to remain the same, there is a growing risk that monetary tightening may persist for an extended period. A revision of the dot chart to eliminate a rate cut in 2024 would be perceived as a hawkish move to maintain rates.

Economic indicators released on the day showed that Canada’s inflation rate increased in August due to rising gasoline prices, while housing starts in the United States fell more than expected, weighing on investor sentiment.

In stock news, Maple Bear (CART.O), the operator of Instacart, a newly listed food delivery service on the Nasdaq, rose by 12.3%, while semiconductor design giant Arm, which went public last week, fell by 4.9%.

Walt Disney Co. (DIS.N) faced a decline following its announcement to expand capital investment in its park business, which led to a sell-off. Starbucks (SBUX.O) also experienced a decrease due to lower investment decisions.

On a positive note, General Motors (GM) (GM.N) and Ford Motor (FN) both saw an increase. However, the United Auto Workers (UAW) plans to announce another strike on the 22nd if no progress is made in labor negotiations.

The New York Stock Exchange witnessed a higher number of declining issues compared to advancing issues, with a ratio of 1.67-to-1. On the Nasdaq, many stocks had discounts, resulting in a ratio of 1.47-to-1.

The total trading volume on US exchanges amounted to 9.6 billion shares, slightly lower than the average of the previous 20 business days, which stood at 10.05 billion shares.

*Please refer to the “Related Content” menu on the right side of the screen for more information on S&P sector indices and the original text. These values are provisional and based on LSEG data. Discrepancies from the previous day may occur.

Our Standards: The Thomson Reuters Trust Principles.

The US stock market closed. Ahead of the US Federal Open Market Committee (FOMC) meeting, held by the US Federal Reserve (Fed) until the 20th, a risk-off sentiment has weighed on the market. Picture taken on August 29 (2023 Reuters/Brendan McDermid/File Photo)

NEW YORK (Reuters) – U.S. stock markets closed lower. Ahead of the US Federal Open Market Committee (FOMC) meeting, held by the US Federal Reserve (Fed) until the 20th, a risk-off sentiment has weighed on the market.

The Federal Reserve will announce the FOMC results on the afternoon of the 20th. The policy rate is expected to remain unchanged, and market attention will focus on the outlook for the policy rate and Chairman Powell’s press conference.

Michael Green, chief strategist at Simplify Asset Management, said that although rates are priced to remain the same, there is also a growing risk that monetary tightening will last a long time. “If (the Fed) were to revise the dot chart to eliminate a rate cut in 2024, it would be seen as a very hawkish move to keep rates on hold,” he said.

Economic indicators released on the day showed that Canada’s inflation rate increased in August due to rising gasoline prices, and that housing starts in the United States fell more than expected, weighing on investor sentiment.

Maple Bear (CART.O), the operator of Instacart, a newly listed food delivery service on the Nasdaq, rose 12.3%. Meanwhile, semiconductor design giant Arm, which went public last week, fell 4.9%.

Walt Disney Co. was not. (DIS.N) likes the company’s announcement to expand capital investment in its park business, leading to a sale.

Starbucks (SBUX.O) also fell due to lower investment decisions.

General Motors (GM) (GM.N) and Ford Motor (FN) rose. The United Auto Workers (UAW) plans to announce another strike on the 22nd if there is no progress in labor negotiations.

The decrease in issues outnumbered the number of issues developing on the New York Stock Exchange by a ratio of 1.67-to-1. On the Nasdaq, there were many stocks with discounts, with a ratio of 1.47 to 1.

Total trading volume on US exchanges was 9.6 billion shares. The average for the last 20 business days was 10.05 billion shares.

*For related information such as S&P sector indices and original text, see the “Related Content” menu on the right side of the screen These are provisional values ​​based on LSEG data. The comparison from the previous day may not match .

Our Standards: The Thomson Reuters Trust Principles.

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