US stocks mixed as investors look forward to Fed meeting
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Traders working on the floor of the New York Stock Exchange, in New York City, on Sept 12.
PHOTO: REUTERS
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- US stocks closed mixed as investors anticipate the Federal Reserve's interest rate decision next week.
- A University of Michigan survey showed consumer sentiment retreated, especially among lower and middle income consumers.
- Expectations are high for a 25 basis point rate cut, with focus on the Fed's guidance and future economic forecasts.
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NEW YORK - Wall Street stocks closed mixed on Sept 12 as investors look ahead to the Federal Reserve’s interest rate decision next week, with strong expectations of a rate cut.
The Dow Jones Industrial Average dropped 0.6 per cent to 45,834.22, while the broad-based S&P 500 Index was flat at 6,584.29.
The tech-heavy Nasdaq Composite Index climbed 0.5 per cent to 22,141.10.
A University of Michigan survey showed on Sept 12 that consumer sentiment retreated in early September, particularly among lower and middle income consumers.
The report came on the heels of inflation data that met analysts’ expectations, alongside numbers signalling weakening in the employment market.
All of these have added to conviction that the US central bank will opt for a rate reduction of 25 basis points at the end of its two-day meeting on Sept 17, bolstering markets.
“It really is all about the Fed” next week, said Mr Christopher Low, of FHN Financial.
While investors have priced in a rate cut, all eyes are on guidance from the central bank and how much the Fed is shifting its focus from curbing inflation to supporting the cooling jobs market.
“In addition to that, we will have a new Fed (economic) forecast,” Mr Low said. “We’re going to want to try to gauge how many cuts they’re thinking of in the future.” AFP
