Stock market today: Wall Street falls before the Fed meeting | national news

NEW YORK (AP) — Stocks fell on Wall Street Tuesday ahead of several key inflation reports this week and the Federal Reserve’s latest policy decision on interest rates.

The S&P 500 fell 0.2%. About 80% of stocks in the benchmark index fell. The Dow Jones Industrial Average fell 195 points, or 0.5%, and the Nasdaq rose 0.1% as of 11:11 a.m. Eastern time. The slowdown in trading follows another record day for the S&P 500 and Nasdaq.

There was little economic or corporate news for investors to review. General Motors rose 2.1% after the automaker announced its board of directors approved a $6 billion stock buyback.

Banks were among the largest weights in the market. Fifth Third Bancorp fell 2% after cutting its revenue growth forecast.

Apple rose 5.4%, helping to offset losses elsewhere in the tech sector. The company is gaining ground after highlighting its advancement in artificial intelligence technology.

Treasury yields fell in the bond market. The 10-year Treasury yield fell to 4.45% from 4.47% Monday evening.

The focus of this week will be on Wednesday, when the United States releases its latest consumer inflation update and the Federal Reserve announces its latest interest rate update. The United States will also release its latest wholesale price update on Thursday.

Wall Street expects the government’s consumer price index to remain unchanged at 3.4% in May. Inflation as measured by the CPI is down sharply from its peak of 9.1% in 2022, but it appears to be stagnating around 3%. This has complicated the Fed’s goal of returning inflation to its 2% target rate.

The Fed has kept its main interest rate at its highest level in more than two decades and Wall Street is currently hoping for one or two rate cuts this year. Virtually no one expects it to change its key interest rate at its current meeting, which begins Tuesday. Policymakers will release their latest forecasts on Wednesday on the direction they see interest rates and the economy going.

When Fed officials released their latest projections in March, they indicated that the typical member expected about three interest rate cuts in 2024. That forecast will almost certainly come true this time around.

Data on the economy has been mixed recently, and traders are hoping for a slowdown that doesn’t lead to a recession and is of ideal magnitude. A slowdown would put less upward pressure on inflation, which could encourage the Fed to cut rates. A decline in interest rates could further fuel growth in the stock market as a whole. Major indexes, however, hit record highs, despite concerns about persistent inflation and high interest rates.

The economy has remained resilient thanks to support from a strong jobs market and consumer spending. Consumers are increasingly stressed, particularly those on lower incomes, and retailers have warned investors about the potential impact on profits and revenues. The U.S. labor market is showing signs of slowing, which could dampen inflation but add more stress to consumers.

Stocks in Europe fell and stocks in Asia were mixed.


AP writers Zimo Zhong and Matt Ott contributed to this report.

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