The stock market closed nearly flat on Tuesday, with small caps leading the way as investors awaited the Federal Reserve’s rate decision on Wednesday. The Dow Jones Industrial Average ended slightly lower, while the S&P 500 saw a minimal gain extending its winning streak to seven days. The Nasdaq composite rose 0.2%, though it had been up by 1.1% earlier in the day. The Russell 2000 outperformed, gaining 0.7%, with the Innovator IBD 50 ETF climbing nearly the same amount.
Despite the market’s downward reversal, breadth remained positive, with more rising stocks than falling ones on both the NYSE and the Nasdaq exchange. Some individual stocks made notable moves, with Synchrony Financial jumping 3.5%, GE Vernova rising 2.6%, and Accenture falling 4%. AppLovin continued its uptrend, while Interactive Brokers made gains along with Rhythm Pharmaceuticals.
In other news, Visa broke out of a flat base, while Flutter Entertainment acquired Snaitech for over $2.5 billion. Hewlett Packard Enterprise surged as a BofA Securities upgrade boosted the stock. The Federal Reserve is set to announce its rate decision on Wednesday, with expectations of a rate cut following strong economic growth indicators. Intel announced plans to spin off its foundry business and expand its partnership with Amazon, leading to a 5% jump in its stock.
Overall, the stock market remained relatively stable on Tuesday, with investors cautiously optimistic as they awaited the Fed’s decision and reacted to individual company news.
