The markets ended Tuesday’s trading session on a mixed note as the Federal Reserve meeting commenced and earnings reports took center stage. While the Dow Jones Industrial Average saw gains and the Nasdaq trimmed some of its losses, the S&P 500 failed to break above a crucial support level.
Despite components like Merck and Procter & Gamble taking a hit, the Dow managed to close 0.5% higher. On the other hand, the Nasdaq closed down 1.3%, and the S&P 500 finished the day 0.5% lower. This left the S&P 500 just below its 50-day moving average.
Market volume was higher compared to the previous day, with the NYSE seeing more advancing stocks while the Nasdaq experienced more decliners. The small-cap Russell 2000 managed to reverse its losses and end the day in positive territory.
With the start of the Fed meeting, investors are eagerly awaiting any cues from Jerome Powell regarding potential rate cuts. The chances of a rate cut at the Fed’s September meeting are high, according to the CME FedWatch tool.
Earnings reports from companies like Microsoft, Arista Networks, First Solar, and Pinterest were in focus. Notable moves included Tesla falling on a vehicle recall, Lattice Semiconductor declining on weak results, and stocks like Ryan Specialty Holdings and F5 breaking out.
Looking ahead, earnings from Meta Platforms, Apple, and Amazon.com are on the horizon. Economic data showed job openings rising and housing prices increasing slightly, while the 10-year Treasury yield fell.
Financial stocks like Goldman Sachs and JPMorgan Chase stood out, while companies like Howmet Aerospace, Pfizer, PayPal, and Sprouts Farmers Market reacted positively to their earnings reports.
Overall, the day was marked by a mix of positive and negative developments in the markets, making it crucial for investors to stay informed and vigilant amid the ongoing economic and corporate developments.
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